Copyright© 2006 by School Services of California, Inc.

                                      Volume 19                   For Publication Date: December 15, 2006             No. 26

By the Way . . .
 

Revise Your Payroll System for These New Amounts for 2007. The maximum amount for wages applicable to Social Security will be $97,500 (up from the current $94,200). The Medicare portion continues to apply to all wages, with no ceiling. The maximum amount allowed to be contributed to a tax-sheltered annuity (Section 403[b]), and deferred compensation (Section 457) will be $15,500. The maximum catch-up contribution to these plans remains at $5,000.