What is FICA and what is FIT in tax language?
al fica tax. US FICA tax is OASDI (FICA) (social security and Medicare taxes) all mean the same tax. For the year 2009 and 2010 the maximum social securit y contribution limit is 6621 at 6.2% up to the gross wages earned income limited amount of 106800. No limit on the amount of gross earned income that is subject to the Medicare tax rate of 1.45% of gross income. If you are a self employed taxpayer then you are responsible for all of your own FICA self employment taxes of 15.3% plus any income taxes on your net profit from your business operation at your marginal tax rate. For those with well above average income, the Federal income tax withholding may be far more than FICA; FICA is capped, but income tax and the medicare tax is not. (MORE)
FICA stands for Federal Insurance Contributions Act! It’s a tax that employers take out of employees’ pay check for social security benefits for the elderly, di sabled, the retirees, and kids that parent or parents work are dead. (MORE)
In most cases, there is no minimum age for payroll tax withholding. Parents do not have to withhold payroll taxes on payments for services of a child under the age of 18 who works in a trade or business if the trade or business is a sole proprietorship or a partnership in which each partner is a parent of a child. Parents do not have to withhold payroll taxes for a child under the age of 21 for work other than a trade or business (such as work in the home). There is a wage test for domestic household workers of $1,700/year (2011); individuals who pay someone less than that (including parents who employ their children) do not have to withhold taxes. I don’t find any minimum age or minimum wage test for other employers withholding payroll taxes. (MORE)
under the fedaral insurance contributions act 12.4% of income up tto an annual limit must be paid into social security and a additional 2.9% must be paidd into medicare (MORE)
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Yes. The way it works in most cases is that you pay FICA taxes in the amount of 6.2% of your gross income and your employer also pays the same amount. Also you are required to pay 1.45% of your gross income for Medicare tax and your employer also matches that amount. So in total you are paying for half of these two taxes and your employer pays for half of the total taxes for these two taxes. (MORE)