Madison school district enjoys budgetary success. Near the start of the 2010s, Madison District Public Schools moved out of deficit, bringing its expenditures in line with its revenues. Since then, the district has continued to improve its financial picture by leaps and bounds.
The Social Security tax rate is assessed on all types of income earned by an employee including salaries, wages, and bonuses. However, there is an income limit to which the tax rate is applied. For 2017, the Social Security tax is taken from income up to an annual limit of $127,200. Any amount earned above $127,200 is Social Security tax-free.
Pension payments, annuities, and the interest or dividends from your savings and investments are not earnings for Social Security purposes. Only earned income, your wages, or net income from self-employment, is covered by Social Security. You may have to pay income tax on pensions, annuities, interest, or dividends, but you do not pay Social Security taxes. Those types of income are not on your Social Security record. 1  Pension Benefit Guaranty Corporation (PBGC):  Find an Insured Pension Plan.