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What part of FICA does the employer pay?

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2010-12-21 14:39:24
2010-12-21 14:39:24

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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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.

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

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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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FICA stands for Federal Insurance Contributions Act. Basically, it's taxes used as payment into the Social Security and Medicare benefits programs. This is how you contribute to those programs. When you're an employee, you pay half and your employer pays half. Your half is deducted from your paycheck, then your employer adds their half and sends the entire amount in on your behalf when they pay all the other payroll taxes. Self-employed people don't have an employer to pay half, so they pay the entire amount for their Social Security and Medicare taxes.

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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.

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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.

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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

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The maximum FICA tax for 2011: Employee 5.65% Employer 7.65% SSI: Employee 4.20% Employer 6.20% MED: Employee 1.45% Employer 1.45% Income subject to SSI tax: $106,800 Employee $4,485.60 Employer $6,621.60

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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?

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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 106,800, how pension contributions factored, State taxes, etc.). If you are an employee, the employer MUST pay half of the contribution so you pay 7.65% and the employer pays the same. If you're 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.

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


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