What would you like to do?
Why is Medicare taxes deducted from your paycheck?
Answer . This will depend upon several variables such as the State you live in, the amount of pay and your companies optional elections.\n. \nHere's few items that you can… almost always expect (unless you just make too little):\n. \n1. Federal Income Tax - This is based on a calculation that takes into account the frequency of your pay and the amount of the pay.\n2. Medicare - This is a set amount that will always be applied to your pay.\n3. Social Security - This is a set amount that will always be applied to your pay, however it does have an annual maximum.\n4. Insurance - If you company offers health insurance and you have agreed to the terms, generally a set amount will be applied.\n5. 401k, IRA, Retirement - If your company offers a type of retirement deduction program then this amount will be applied.\n6. Uniforms, loans, etc. - Some companies that require their employees to purchase uniforms will purchase the uniforms for the employee and then charge that amount back to them at a set amount per pay check. This can be also for employer granted loans and/or to pay back advances on previous pay.\n7. State Income Tax - Some stated have an income tax. If you live and/or work in a state that does, then this amount will be deducted as well.\n. \nIf you have deductions that you do not understand or do not think you have agreed to, then you should consult with your supervisor as soon as possible.\n. \nHope this helps.
Answer . All employers are required by law to withhold many taxes (and pay some others for) an employee. Any employer who arranges with you not to, (commonly called pay…ing you under the table), actually doesn't change your obligation to pay tax on your earnings. But, probably saves himself money at the cost of those benefits HE would have had to pay for you....like being able to ever collect unemployment or any disability or loss for injuries you may incur. Common sense should tell you an employer that will lie and cheat to hide a small amount of money from the authorities..isn't going to have any second thoughts about doing the same to you (or your customers)...or being cheap on things that may effect your safety...etc. To be paid without any employer tax withholding obligations you must be an "Independent Contractor", which differs from an employee in many ways....basically how work is dictated and that the boss really can't be "the boss" - since your independent....which as I guess is all he would have to give up to not have to be a liar, thief and cheat - as above - ...it is again a good indication of what your dealing with. . By the way...if he had half a brain as a business man, don't you think he'd want to show as high a payroll as possible for the IRS? Generally, all payroll costs are expenses that are deductible without question..so he has a great tax deduction! Payroll, which your supposed to report to them - is easily audited and accepted. The nitwits that pay under the table make themselves liable for a criminal act, show they are disreputable in business dealings and do that to...many times....become a tax cheat and pay MORE than they should. (Or do you think that the actual payroll costs will magically appear when he needs them...because that isn't easily audited by comparing it to what was reported?)
Certain retirement plan, such as 401(k) and 403(b), contributions (http://www.irs.gov/publications/p525/ar02.html#d0e2242).. Certain parking and transit expenses (http://www.…irs.gov/formspubs/article/0,,id=181059,00.html).. Medical and long term care insurance payments, Health Savings Accounts (HSA), Medical Savings Accounts (MSA), Health Reimbursement Arrangement (HRA), and Flexible Spending Account (FSA) contributions (http://www.irs.gov/publications/p969/index.html).. Dependent care expense FSA contributions (http://www.irs.gov/faqs/faq/0,,id=199775,00.html).
No. method of payment does not change the taxability of the premium.
Federal and state taxes should be deducted by your employer based on how you filled out your Form W-4 when you were hired. If you claim too many exemptions on your Form W-4 …it may result in no federal taxes being withheld. If you need to change the amount being deducted, you will need to fill out a new Form W-4. Contact the IRS or state tax agency for help in filling out your Form W-4. If you need a different Form W-4 for your state taxes, you may fill one out and write "State only" on the top before giving it to your employer. If your employer is refusing to withhold taxes from your pay, you can contact the IRS and submit a Form W-4 directly to them. This notifies the IRS that your employer is not complying with the law. If you are classified as a independent contractor, anyone who hires you does not make any payments on your behalf. Independent contractors are responsible for making estimated payments for their federal and state income taxes and Social Security taxes. They are also not eligible for unemployment. If you are concerned that you should not be an independent contractor, you should contact your state's employment department to determine if you are really an independent contractor or an employee (and your employer is illegally trying to save money by not classifying you as an employee).
In most years, your employer will deduct the following from your paycheck: Social Security: 6.2% of your gross pay Medicare: 1.45% of your gross pay However, in 2011 O…bama signed into a law a "payroll tax holiday" as part of the continued effort to stimulate the economy. For 2011 only, the social security tax coming out of your paycheck is 4.2% instead of 6.2%, meaning that this year you will take home more money than you would in a "normal" year. Your employer matches these amounts too -- they pay another 6.2% for social security, and another 1.45% for Medicare. Under the payroll tax holiday, only your portion of social security is reduced to 4.2% -- your employer is still paying 6.2% of your pay into social security for you.
No they call it a contribution but if you refuse to pay it they will come after you and kill you or put you in prison. So no I would not call that optional.
I am not finding an answer to my question---Are the premiums on mymedicare supplement tax deductable? Please help!
Social Security is funded by FICA; Medicare is funded by Medicare tax.
Many taxes are deducted from your paycheck, but sales tax is not one of them. Sales taxes are collected by a merchant at the point of purchase of most goods and some services.… The merchant remits the sales taxes to the state on your behalf. Occasionally, you many not pay sales taxes at the time of purchase, as in when you make a purchase online from a merchant in another state. In those cases, you would owe a use tax to your state which is usually paid when filling out your annual state income tax return.