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Not necessarily.
FICA or Federal Insurance Contributions Act AKA Social Security and Medicare Taxes, are a very different type of tax than Personal Income Tax. Your Federal Withholding Taxes are the your personal income tax withheld and deposited with the Federal Reserve banks, for the Internal Revenue Service.
FICA is flat rate, regressive tax (paid by the employee and employer, in matching portions.), which is assessed on the first dollar earned in wages at 6.2% (for SS tax), and 1.45% (for medicare), on the employee, and the same portion on the employer. The SS tax of 6.2% is assessed on earnings up to $106,800; earnings greater than this amount, are no longer taxed or withheld for SS tax, at 6.2%. For the medicare tax, which is also part of FICA, at a rate of 1.45%, there is not a limit in earnings, on which the tax is assessed.
Your Personal Income tax withheld or paid in to the IRS, which are withheld from your wages, are based on a number of factors but in theory, the withholding or personal income tax is a progressive tax. Unlike the flat rate, regressive tax, progressive taxes are assessed at a percentage rate, which increases as the taxable base amount increases or, in the case of wages, and personal income taxes, as wage base increases. Personal withholding or income tax withheld from gross income, is also based on a number of factors, besides an increased percentage rate, as the wage based increases. One does not pay personal income tax on every dollar earned. There are personal exemptions, and allowances claimed by the wage earner, which are initially considered, when withholding personal income taxes from gross wages.
FICA withholding is taxed on the first dollar earned, at 6.2% for SS tax, for a maximum of $106,800, and 1.45% for Medicare tax, with no wage maximum. Personal Withholding is based on the wage base amount, personal allowances and exemptions claimed, and if possible, credits claimed. Which means, you can earn several thousand dollars, and not have any personal income tax withheld, due to the number of personal allowances, exemptions and credits claimed, where as you will immediately be taxed for FICA.
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How do you stop paying Federal Insurance Contributions Act?
You cannot stop paying into the FICA fund as long as your are a US Citizen or resident alien and have any earned income form providing your services to earn the income.
At what income do you stop paying fica in 2010?
For 2010, the earnings maximum will remain at $106,800. The same as it was for 2009 FICA.
When do you stop paying FICA for the year?
The maximum amount of wages subject to the FICA-Social Security tax for 2009 is $106,800. There is no limit on the amount of wages subject to the FICA-Medicare tax.
Does everyone pay FICA taxes?
I have an employee over 70 years of age, can she stop withholding her FICA taxes? (Social Security) Thank you
At what income do you stop paying FICA in 2009?
In 2009, $106,800 for Social Security. No maximum for Medicare.
When does fica stop being taken out of your check?
For tax year 2007, FICA stops being taken out on wages at $92,500. Wages received over that amount are not taxed. Sharon http://taxresolutionaries.blogspot.com
When does FICA stop being withheld in paychecks?
When you have one employer the amount of FICA for your social security would stop once your wages with the withheld social security amount reach 106800 and social security amount withheld would be 6621.60 If you have more than one employer and your combined wages reported on your W-2 are more than the 106800 amount and your the withheld social security amount is more than the 6621.60 then you would get a tax credit for the amount that is over the 6621.60 on your federal income tax return.
Maximum amounts of earnings subject to FICA taxes?
When you have one employer the amount of FICA for your social security would stop once your wages with the withheld social security amount reach 106800 and social security amount withheld would be 6621.60
What age does federal taxes stop?
Where I live the executor of your estate will have to file your Federal taxes after you die.
When do you stop paying federal tax on your earnings?
When you stop earning money. Or you earn the money in an other country.
Can a federal felony stop you from being hired at a Michigan prison?
Yes, it can.
When will the federal government stop printing dollars?
december 23 2012
