That higher social security pinch
Chicago — Get set for a bigger paycheck tax bite in 1981. There will be more coming out of paychecks, the Commerce Clearing House reminds taxpayers. The reason is that the social security tax rate goes up to 6.65 percent each for employer and employee.
Furthur, a new and higher annual wage base goes into effect. In 1981, earnings up to $29,700 will be subject to the tax, while the 1980 limit was set at $25,900.