SOME WORKERS PAY MORE IN TAXES FOR SOCIAL SECURITY DUE TO INCOME LEVELS

CAPE GIRARDEAU - People who make more than $5l,300 in 1991 will see an increase in their Social Security taxes.

That is because the wage base -- the amount of annual earnings subject to the Social Security tax -- increased to $53,400 this year.

And, for the first time, the wage base for Medicare hospital insurance will be higher than for Social Security.

The total 7.65 percent Social Security tax rate is really the combined Social Security and Medical hospital insurance tax rate. Of the total 7.65 percent rate, 6.2 percent is for Social Security and 1.45 percent is for Medicare.

Beginning Jan. 1, 1991, the 6.2 percent Social Security tax rate applies to earnings up to $53,400. But the Medicare rate of 1.45 percent applies to earnings up to $125,000.

Self-employed people can take special deductions that help limit their tax liability. Contact the Internal Revenue Service for tax information.

In 1991, the amount of annual earnings needed to earn 1 work credit for Social Security will be $540, up from $520 in 1990. A person who earns $2,160 or more gets 4 credits, the maximum for a year.