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If the employer pays the employees' portion of the Social Security tax what is that percentage?
Wiki User
∙ 13y ago
For the social security amount and the Medicare the total percentage is 15.3%.
Employer and employee each is supposed to pay one half of the amounts.
Employer Medicare 1.45% SS tax 6.2% equal 7.65%.
Employee should be the same amounts.
Wiki User
∙ 13y ago
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What is er tax?
U.S. tax law requires payment of social security and medicare taxes by both employees and their employer. The logical abbreviation for pay stub purposes would seem to be "Emp" for "Employee" and "Emp" for "Employer". Because the dual use of "Emp" would create confusion, the industry solution has been to use the first and last letters of "Employee" and "Employer". Hence, the phrase ER Taxes refers to the employer's portion of the total taxes payable to the IRS or Social Security Administration. Harley Snyder harley.snyder@gmail.com
Is it mandatory to sign up for life insurance at work?
Not the portion you would have to pay for. Your employer may offer free coverage though to all employees.
How do you calculate the employer's portion of payroll taxes?
The employer portion of the payroll taxes is computed by multiplying the gross wage by the appropriate percentage assigned to that tax. For example, the social security percentage would be 6.2% each for the employer and the employee. Medicare would be 1.45% for each. Your state/county will each have their own percentages. 1. The employer pays one half of the FICA taxes at 7.65% (Medicare is 1.45% - OASDI is 6.2%) 2. The employer pays Federal Unemployment Tax (FUTA) which is calculated at .8% of the first $7000 of employee wages - works out to $56 per employee per year if they make over $7000.00. 3. The employer pays State Unemployment Taxes - rates and amount vary by State. The remaineder of the taxes are withheld from the emplyees paychecks.
What is the percentage amount that the employer pays to FICA?
As of the new law passed in Dec 2010: The tax is payable on the first $106,800 of earnings. Earning are defined slightly differently for this than what is used for withholding, (or other things). Additionally, a portion of what was a total of 15.3% tax equally paid between employer & employee - or entirely by self employed (half employer paid, half employee), is dedicated to Medicare and has no maximum earnings limit. HOWEVER: Under current law, employees pay a 6.2% Social Security tax on all wages earned up to $106,800 (in 2011) and self-employed individuals pay 12.4% Social Security self-employment taxes on all their self-employment income up to the same threshold. For 2011, the Senate passed 2010 Tax Reform Act gives a two-percentage-point payroll/self-employment tax holiday for employees and self-employeds. As a result, employees will pay only 4.2% Social Security tax on wages and self-employment individuals will pay only 10.4% Social Security self-employment taxes on self-employment income up to the threshold. The maximum savings for 2011 will be $2,136 (2% of $106,800). The amount paid by the employer will not change and will be that same 2% more than the employee.
How do you figure out the total of something when you are given a portion of it and a percentage of it?
Portion/Percentage = Total/100 So Total = 100*Portion/Percentage.
Can you draw unemployment benefits and Social Security benefits at the same time in Missouri?
Yes you can, and only 4 state's offset your unemployment compensation by a portion of your Social Security benefits (Illinois, Louisiana, Utah, and Virginia). YES. The two programs are different. Social Security is a Federal program that you pay into from your paycheck, as does the employer, and you are eligible to receive after you turn 62 (unless earlier due to being disabled, which is covered under a different part of the program). The longer you delay receiving Social Security the larger the monthly benefit you would get. The amount you receive depends on your age, how many 'quarters' you worked, and the amount of your earnings. On the other hand, unemployment security, a federal/state program, administered by the state, comes from contributions paid into the program by the employer and the amount he pays in is a percentage of his payroll based on the employer's turn-over rate of employees (the lower the turn-over, the lower the percentage). This way the employer is encouraged to retain employees in order to reduce his costs. The employee, generally, receives unemployment benefits from the state's collected 'employer's unemployment contribution pool', IF he was laid off, i.e. reduction in staff, etc., or was fired without cause (not caught stealing, harassment, drugs, etc.), or other reasons not due to his own actions. Thus you can both draw Social Security while still working (as I had done) or if drawing unemployment because the reason for drawing both are different, from different government agencies, and for different causes.
What is the fica taxes for 2010?
Still 6.2% for both employer & employee. Actually, that 6.2% is just for the social security tax portion of FICA. FICA consists of social security and medicare. The total FICA tax is 7.65%, which includes the 1.45% medicare tax. There is currently a limit on the social security tax portion (6.2% of $106,800--which is $6,621.60), while there is no medicare limitation.
What part of FICA does the employer pay?
Your employer is forced to pay 7.5% of your wages to Social Security (FICA). This is in addition to the 7.5% FICA deduction you see on your check stub. As of the new law passed in Dec 2010: The tax is payable on the first $106,800 of earnings. Earning are defined slightly differently for this than what is used for withholding, (or other things). Additionally, a portion of what was a total of 15.3% tax equally paid between employer & employee - or entirely by self employed (half employer paid, half employee), is dedicated to Medicare and has no maximum earnings limit. HOWEVER: Under current law, employees pay a 6.2% Social Security tax on all wages earned up to $106,800 (in 2011) and self-employed individuals pay 12.4% Social Security self-employment taxes on all their self-employment income up to the same threshold. For 2011, the Senate passed 2010 Tax Reform Act gives a two-percentage-point payroll/self-employment tax holiday for employees and self-employeds. As a result, employees will pay only 4.2% Social Security tax on wages and self-employment individuals will pay only 10.4% Social Security self-employment taxes on self-employment income up to the threshold. The maximum savings for 2011 will be $2,136 (2% of $106,800). The amount paid by the employer will not change and will be that same 2% more than the employee.
What is the 941 tax?
The 941 is the Employer's Quarterly Federal Tax Return and you can find the form and the instructions by going to the IRS gov web site ans use the search box choose instruction or the formInstructions for Form 941 (4/2010) Employer ...Instructions for Form 941 - Introductory Material ...Purpose of Form 941 ...Purpose of Form 941These instructions give you some background information about Form 941. They tell you who must file Form 941, how to complete it line by line, and when and where to file it.If you want more in-depth information about payroll tax topics relating to Form 941, see Pub. 15 (Circular E), Employer's Tax Guide, or visit the IRS website atthe Related Link below and click on the Employment Taxeslink.Federal law requires you, as an employer, to withhold taxes from your employees' paychecks. Each time you pay wages, you must withhold - or take out of your employees' paychecks - certain amounts for federal income tax, social security tax, and Medicare tax. Under the withholding system, taxes withheld from your employees are credited to your employees in payment of their tax liabilities.Federal law also requires you to pay any liability for the employer's portion of social security and Medicare taxes. This portion of social security and Medicare taxes is not withheld from employees.Who Must File Form 941?
What is 941 Taxes?
The 941 is the Employer's Quarterly Federal Tax Return and you can find the form and the instructions by going to the IRS gov web site ans use the search box choose instruction or the formInstructions for Form 941 (4/2010) Employer ...Instructions for Form 941 - Introductory Material ...Purpose of Form 941 ...Purpose of Form 941These instructions give you some background information about Form 941. They tell you who must file Form 941, how to complete it line by line, and when and where to file it.If you want more in-depth information about payroll tax topics relating to Form 941, see Pub. 15 (Circular E), Employer's Tax Guide, or visit the IRS website atthe Related Link below and click on the Employment Taxeslink.Federal law requires you, as an employer, to withhold taxes from your employees' paychecks. Each time you pay wages, you must withhold - or take out of your employees' paychecks - certain amounts for federal income tax, social security tax, and Medicare tax. Under the withholding system, taxes withheld from your employees are credited to your employees in payment of their tax liabilities.Federal law also requires you to pay any liability for the employer's portion of social security and Medicare taxes. This portion of social security and Medicare taxes is not withheld from employees.Who Must File Form 941?
Why would a prospective employer be interested in your health?
A prospective employer may be interested in your health because many employers pay a portion of their employees' health insurance. Health insurance premiums may be higher if you are in poor health or a regular smoker. However, a potential employer is not legally allowed to ask questions about health during an interview.
What percentage of your paycheck is withheld for FICA?
7.65% up to a limit around $100K and the employer pays the same amount on your behalf As of the law passed Dec. 2010: The tax is payable on the first $106,800 of earnings. Earning are defined slightly differently for this than what is used for withholding, (or other things). Additionally, a portion of what was a total of 15.3% tax (half employer paid, half employee), is dedicated to Medicare and has no maximum earnings. HOWEVER: Under current law, employees pay a 6.2% Social Security tax on all wages earned up to $106,800 (in 2011) and self-employed individuals pay 12.4% Social Security self-employment taxes on all their self-employment income up to the same threshold. For 2011, the Senate passed 2010 Tax Reform Act gives a two-percentage-point payroll/self-employment tax holiday for employees and self-employeds. As a result, employees will pay only 4.2% Social Security tax on wages and self-employment individuals will pay only 10.4% Social Security self-employment taxes on self-employment income up to the threshold. The maximum savings for 2011 will be $2,136 (2% of $106,800).
