What is the FICA Tax Rate for 2011, 2012?
66What is the FICA Tax Rate?
Most employers will need to know what the FICA tax rate is. If you are an employer asking yourself, what is the FICA tax rate? The answer is 7.65% on gross earnings.
FICA Provides for Federal Insurance
Let’s start at the beginning with learning what FICA stands for. FICA stands for the Federal Insurance Contributions Act. The employer will pay his or her half and the other half is taken from the paycheck of the employee through payroll taxes.
FICA is basically the social security tax and it’s paid to the federal government to provide for old age, survivors, disability, and hospital insurance.
- The Social Security System Funds;
- Old Age Survivors Disability
- Medicare Funds;
- Hospital Insurance
What is the FICA Tax Rate for 2011, 2012?
- FICA Tax Rate = 7.65%
- Social Security Limit = $106,800
- Maximum Social Security Contribution = $6,621.60
As an employer you are required to withhold social security on your employees’ wages. Employers are also required to withhold Medicare taxes on wages and match the employee amount of 1.45% totally 2.9% of all wages earned. Medicare is not the same as social security when it comes to a contribution limit because one does not exist. Medicare does not have a contribution limit or cap.
So there you have the answer to your question, what is the FICA tax rate? Now what are you going to do about it? May I suggest Intuit Online Payroll? No need to calculate FICA tax rates by yourself when online payroll software is available.
Online Payroll Tax Software
How would you like to click a button to enter the hours an employee has worked for the week and automatically have all FICA taxes taken from the employees’ paycheck? Payroll software does exist and you can try the simple and easy QuickBooks online payroll services for FREE for 30 Days! No training is necessary and you can get started right after you create a user name and password.
If you are interested in discovering the benefits of having FICA taxes calculated for you, then give QuickBooks Payroll a try today. You have absolutely nothing to lose by trying before you buy. You will not have to ask what the FICA tax rates are for 2011, 2012 ever again!
FICA Limit
Leave Us A Comment - Join the Conversation!Loading...
Any plan that reduces contributions to the Social Security Trust Fund ie: private accounts is counter productive and not a viable solution for the original intent of the program.
Those not in need of the meager funds at retirement should be given the option of (A) - refund of all FICA taxes paid or (B) - reinvestment of all FICA taxes paid and given an annual tax free dividend...the reinvestment may be bequeathed tax free (no inheritance tax)
If the tax rate didn't change then why did my FICA go up .5%. I'm now getting 30 dollars less on 600.00
For 2011, the combined OASDI rate (4.2%) and HI rate (1.45%) is 5.65% for the employee. For the employer it remains at 6.2% OASDI and 1.45% HI for a combined rate of 7.65%.
Employer share will remain at 6.2%
My question is the same as Ed's. What about the employer's share of FICA. Has it also been reduced to 4.2%?
2011 FICA for employees is 4.2%
What about the employers' share; is it also reduced to 4.2% or is it still 6.2?
carlos j. negron 12 months ago
A little of a lot is more than a lot of nothing!