Generally the SAP threshold means $150,000, however refer to FAR 13.5, Test Program for Certain Commercial Items, which permits the acquisition of commercial supplies and services up to $6,500,000 using SAP.
A: The Democratic Party. Prior to 1984, income derived from Social Security benefits was exempt from taxation. Amendments to the Social Security Act passed by Congress in 1983 allowed for 50% of Social Security benefits to be considered taxable income for taxpayers whose total income exceeded specified thresholds.
Calculate Social Security tax. The tax rate for Social Security is 12.40 percent of gross earnings, of which the employee pays half, or 6.20 percent. Multiply gross earnings by 6.20 percent to find the Social Security tax to be deducted from the employee's pay. Find the amount of Medicare tax.