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What is the FICA tax liability status of pretax contributions to qualified deferred compensation arrangements?
They are subject to FICA tax like any other wages. However the employers' matching contributions are tax-free.
What are two of the programs that FICA funds?
Social Security and Medicare are funded by FICA
Who pays FICA taxes?
employers pay the fica tax
What are two of programs that FICA funds?
Social Security and Medicare are funded by FICA
Is the FICA tax the same as a medicare tax?
No, the FICA tax is not the same as the Medicare tax, although they are related. FICA, or the Federal Insurance Contributions Act tax, encompasses both Social Security and Medicare taxes. The Social Security portion funds retirement and disability benefits, while the Medicare tax specifically funds health care for individuals aged 65 and older. Both are withheld from employees' paychecks and matched by employers.
Which payroll tax is levied on Both employees and employers?
FICA
Employers incur operating costs for payroll taxes?
fica
What is social security max 2009?
The Social SecurityAdminstration issued the inflation adjusted FICA base for 2009; it will be $106,800. That means an employee's 6.2% FICA tax for 2009 will top out at $6,621.60. The 1.45% Medicare component has no wage limit. Employers pay a matching tax. Self-employed taxpayers pay both sides of the FICA tax through their self-empoyment tax.
What is the difference between FICA and federal?
In short, FICA is for Social Security insurance contributions and only funds that. Federal is for income tax, which funds many things, but NOT your SS benefit.
If you are drawing Social Security do you still pay FICA?
Yes. If you work after retirement, your employer is still required to withhold 7.65% of your first $106,800 of gross income for FICA, and to pay a matching amount from company funds on your behalf.
Is fica a required deduction?
Yes, FICA (Federal Insurance Contributions Act) is a required deduction from employees' wages in the United States. It funds Social Security and Medicare programs, which provide benefits for retirees, the disabled, and survivors. Employers are also required to match the FICA contributions made by employees. However, certain categories of workers, such as some state and local government employees or certain religious groups, may be exempt from FICA deductions.
What does the FICA deduction consists of?
The FICA deduction [since 1990] is 6.2% for employees and 6.2% for employers and is the principal funding source for Social Security benefits.
