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Starting with 2011 it was $106,800
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 Medicaid 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.
Adding info for 2012: which because of the discount allowed in how they were paid the previous year, will be felt by many more people).
Generally, FICA taxes are collected at a rate of 7.65% on gross earnings, which are earnings before any deductions are taken. The breakdown of FICA is 6.2% for Social Security (Old-Age, Survivors, and Disability Insurance or OASDI) and 1.45% for Medicare. The following table shows the FICA limits for 2005 through 2012:
2012 FICA Tax and Social Security Limits- FICA Tax Rate = 7.65%
- Social Security Limit = $110,100
- Maximum Social Security Contribution = $6,826.20
- FICA Tax Rate = 7.65% (see note below)
- Social Security Limit = $106,800
- Maximum Social Security Contribution = $6,621.60 (employer) / $4485.60 (employee)
Note: In 2011, the FICA tax rate for employees was lowered to 5.65%. The employer tax rate remained unchanged, while the Social Security rate for employees was lowered to 4.20%.
The maximum savings for 2011 will be $2,136 (2% of $106,800).
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is their an age limit on who pays fica taxes?
is there an age limit on who pays fica taxes
What is the FICA limit for 2013?
$110,000
What is the FICA withholding limit for 2011?
4.2
What is the FICA withholding limit for 2013?
$110,000
What is the FICA withholding income limit for 2009?
In 2009, the IRS set annual Social Security wage base limit at $106,800 at 6.2%. That would make the maximum FICA withholdings $6,621.60.
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 one pay fica taxes over 70 years of age?
No, individuals over the age of 70 are generally exempt from paying Social Security or Medicare taxes (FICA taxes) on any earned income. There is no age limit for paying income taxes on investment income, though.
True or false FICA taxes and federal income taxes are levied on employees earnings without limit?
False and True, in that order. FICA has limits, Fed inc doesn't.
What is the FICA withholding income limit for 2010?
That won't be known until the last quarter of 2009.
Are retirement checks subject to FICA?
Social Security retirement checks are subject to FICA taxes (Social Security and Medicare taxes) unless an individual has already reached the maximum taxable earnings limit for the year. Once the maximum limit is reached, no further FICA taxes are deducted from the retirement checks.
What is change of employer?
If a person leaves one employer to go to work for another employer but has met the fica limit do they have to start a new limit with the new employer?
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.
