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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.

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โˆ™ 2010-12-21 14:39:24
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Q: What part of FICA does the employer pay?
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Can an employer force me a w-2 employee to pay their portion of FICA?

The employer withholds your share of the FICA tax of 7.65% from your gross pay and the employer matches the 7.65% amount to make a total of 15.3% that has to be reported to the SSA.


Can an employer force you to pay fica?

An employer is required by law to subtract FICA from your paycheck (or pay it himself and add the amount as additional income on your W-2) as well as pay his own share. Your employer will deduct the amount from your salary with or without your consent. In rare cases where the employer cannot deduct FICA from your salary (for example, you work mostly on tips and your salary is less than what you owe for FICA), your employer will simply report the uncollected amount to the IRS on your W-2 and whether you pay or not is between you and the IRS. Similarly, if you have unreported tips or self-employment, your employer will not get involved in whether or not you pay.


What tax is matched by your employer?

Many are paid in whole or part by the employer. FICA is split 50/50


Does an employer have to pay FICA for a part time employee?

Yes they do. All wages are subject to FICA and Medicare Taxes. The employer and employee each pay 6.2% of the gross income for Social Security Tax and each pays 1.45% of the gross income for Medicare Taxes. The number of hours works has nothing to do with whether or not taxes are taken out for these taxes.


Does your employer pay FICA taxes?

Yes. The way it works in most cases is that you pay FICA taxes in the amount of 6.2% of your gross income and your employer also pays the same amount. Also you are required to pay 1.45% of your gross income for Medicare tax and your employer also matches that amount. So in total you are paying for half of these two taxes and your employer pays for half of the total taxes for these two taxes.


What is the current FICA tax rate?

The current FICA rate is 12.4%. Employees have 6.2% of their gross pay withheld each pay period, and the other 6.2% is matched by the employer. Self-employed individuals must pay the entire 12.4%


Do you have to pay into FICA if you are on Social Security but still working?

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.


Why would you want your employer to take out FICA and medicare taxes?

It's not an option for him, by law, your employer MUST withhold these taxes from your pay.


How much does the employer pay on behalf of the employee to Social Security?

The employer and employee each pay 7.65% of the first $106,800 of the employee's gross annual salary toward FICA, a flat rate of 15.3%, total.


If employee is exempt from FICA is employer also exempt from contributing to FICA for that employee?

Yes.


You work for the Park Department of your city Calculate your take home pay for 1059.00 a month after FICA is deducted?

You could have some other amounts beside FICA that your employer will be required to withhold from your gross wages for the pay period before your net take home paycheck is issued to you. You should get this information from your employer payroll department as they will be the one that would know how much FICA, federal income tax, state income, local taxes, etc they will have to withhold from your hourly pay or gross pay for the pay period.


Does an employer pay the same percentage in Social Security tax that an employee pays?

Yes. In 2010 and 2011, you each pay 6.2% of your wages, up to $106,800 per year for Social Security, and 1.45% of your total wages for Medicare Part A (hospitalization). The employee and employer each contribute 7.65%, or a total of 15.3%, to FICA.


How many years do you have to pay FICA?

You pay FICA as long as you are earning wages, regardless of your age.


Who pays FICA taxes?

employers pay the fica tax


What does an employer have to match on your taxes?

FICA and Medicare deductions


Is fica paid equally by employer and employee?

Yes


Does and employee have to pay FICA?

FICA contributions, including various sub (categories of things like SS, Disability, Health, etc) are 15.30% of FICA wages. What is considered FICA wages differ from other wage considerations in many ways, (it has a top limit of about 97.5K, how pension contributions factored, State taxes, etc.). If you are an employee, the employer MUST pay half of the contribution. If your self - employed, the amount normally paid by the employer is collected through something called the "self employment tax" when you file your income tax return.


Do Illinois teachers pay FICA?

Yes Illinois teachers pay FICA. However they don't pay social security.


What percent is FICA with 0 dependents?

FICA percent is 15.3% regardless of the number of dependents If you are self employed you pay the full 15.3% which is 12.4% social security and 2.9% medicare If you are employed by someone else you pay half of the FICA or 7.65% of which 6.2% is social security and 1.45% is medicare. You employer than pays the other half.


Why is fica taking more taxes than your state and federal taxes?

Because the social security and medicare tax (FICA) rate does not change from the 7.65% required amount that the employer is required to withhold from your gross earnings for the pay period.


As an employer how much do I deduct for medicare from my employees wages?

You deduct 7.65 of what are FICA wages...a somewhat different than just what you pay...and you pay over 15.30%, since the employer pays half of the amount due. Get help, now....this is nothing to mess around with


Do non-profits pay FICA?

Yes, nonprofits pay FICA and all other payroll related taxes.


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?


Do you have to pay into FICA if you are collecting Social Security but still working?

Yes. You pay FICA at the same rate as before you retired.


What is FICA used for?

FICA is the acronym for the Federal Insurance Contributions Act. It mandates that employers withhold a set percentage of an employee's salary each pay period. FICA also requires the employer match the employee's amount and contribute the money to Social Security. This fund provides retirement income , and disability insurance

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