FICA stands for Federal Insurance Contribution (tax) Act. You and your employer both contribute a percentage of your income to this tax which is attributed to Social Security and Medicare. Social security is the governmental fund that provides income to retirees, disability, etc. Medicare provides medical insurance coverage to persons over age 65.
As of the new law passed in Dec 2010:
The tax is payable on the first $106,800 of earnings. Earning are defined slightly differently for this than what is used for withholding, (or other things). Additionally, a portion of what was a total of 15.3% tax equally paid between employer & employee - or entirely by self employed (half employer paid, half employee), is dedicated to Medicare and has no maximum earnings limit.
HOWEVER:
Under current law, employees pay a 6.2% Social Security tax on all wages earned up to $106,800 (in 2011) and self-employed individuals pay 12.4% Social Security self-employment taxes on all their self-employment income up to the same threshold.
For 2011, the Senate passed 2010 Tax Reform Act gives a two-percentage-point payroll/self-employment tax holiday for employees and self-employeds. As a result, employees will pay only 4.2% Social Security tax on wages and self-employment individuals will pay only 10.4% Social Security self-employment taxes on self-employment income up to the threshold.
The maximum savings for 2011 will be $2,136 (2% of $106,800).
The amount paid by the employer will not change and will be that same 2% more than the employee.
FICA stand for Federal Insurance Contributions Act. It is a Tax that provides Medicare and social security benefits.
FICA is the Social Security Tax as listed on your pay check and deducted from your gross income. It is taxes at a rate of 6.2% of your income and your employer pays another 6.2% as well.
what is the FICA rate for 2011
frequency of fica payments
is there an age limit on who pays fica taxes
A Fica tax has several different purposes that serve different people. A Fica tax serves to finance government educational programs and developmental projects. A Fica tax also provides those who are disabled and/or retired with insurance.
I am doing a certified payroll report and am not certain what they mean can someone tell me what they mean on the paystub of the employee, FICA, FEDERAL STATE TAX and SDI
employers pay the fica tax
what is the FICA rate for 2011
Social Security and Medicare are funded by FICA
FICA deductions are not a function of age.
frequency of fica payments
why wasn't fica taken out of std checks
Yes.
The fica is taken out of your paychecks and added to the Social Security fund.
is there an age limit on who pays fica taxes
A Fica tax has several different purposes that serve different people. A Fica tax serves to finance government educational programs and developmental projects. A Fica tax also provides those who are disabled and/or retired with insurance.
I am doing a certified payroll report and am not certain what they mean can someone tell me what they mean on the paystub of the employee, FICA, FEDERAL STATE TAX and SDI
The maximum amount of wages subject to the FICA-Social Security tax for 2009 is $106,800. There is no limit on the amount of wages subject to the FICA-Medicare tax.