FICA Withholding Tax Rate for 2011, 2012
66FICA Withholding
FICA tax is made up of several insurances: Old Age, Survivors, Disability and Hospital insurance. Old Age, Survivors and Disability portion is deducted through the social security tax. The Hospital insurance is deducted through the Medicare tax.
Calculating the Fica Withholdings Tax Rate
If you are an employer: try the online withholdings calculator by Quickbooks to calculate your employees withholdings tax rate. Federal & State withholding and unemployment taxes are calculated for you.
If you are an employee: TurboTax has a new w-4 calculator available in their tax calculators and tips section of their website. See how many withholding allowances you should take to boost your 2011 tax refund—or your take-home pay.
What is the FICA Withholding Limit?
The income limit for Social Security tax is $106,800; this means that if you have a higher income than $106,800 you will only be taxed on the $106,800. This limit is the same limit that was in place in 2009. At this time, there is no limit to the wages subject to the Medicare tax. All wages are still subject to the 1.45% tax.
The total FICA tax rate is 7.65%, which includes the Social Security tax rate of 6.2% and the Medicare tax rate of 1.45%. The maximum amount of Social Security tax employees and employers will each pay is $6,621.60 in 2010.
When self-employed, you can expect to have the same income limit of $106,800. Also, there is no limit on self-employment wages that are subject to the Medicare tax. The self-employment tax rate is 15.3%, which includes the Social Security tax rate of 12.4% and Medicare tax rate of 2.9%. In 2010, the maximum Social Security tax for a self-employed individual is $13,243.20.
When calculating the amount that will be withheld from your wages, you may want to know what to expect ahead of time. When determining the net amount for your paycheck, every dollar counts. I suggest you use a free, online service such as TurboTax to help you calculate the FICA withholding's.
TurboTax offers several tax software editions that will accommodate every tax situation. They will walk you through the entire process step-by-step. TurboTax has someone available to answer your questions 24 hours a day, 7 days a week.
TurboTax offers free tax calculators to help you understand and know how much tax you will be responsible for when tax time comes. They can also answer all of your tax-related questions.
FICA Limit
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The Democrats are messing with my Social Securiy and Medicare. I've paid int this for 50 years. Just send me my investment with interest and I will allow you to do what you want.
Thank you for making FICA clearer to me. May I use some of your quotes if I give you credit? Thanks. I'm trying to debunk the GOP rhetoric that Social Security is an "entitlement".
Just a Nobody 5 months ago
Here's a Hint, Fiona. If it's being funded by a TAX (It's a FICA *TAX*, meaning it's not your money you're paying into things with like people have been told...), it's an entitlement. Keeping in mind, not all entitlements are a problem- what you should focus on is getting people to focus on the entitlements that ARE a problem- things like Welfare that's heavy with loads and loads of fraud, Medcicaid (ditto...) and things like that which ARE bankrupting the country.