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What tax is paid equally by the employer and employee is the?


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2011-06-16 17:09:14
2011-06-16 17:09:14

The required Social security and medicare taxes.

Also known as the FICA taxes.

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Employment tax liability arises from an employer and employee relationship. Part of this liability is deducted from the employee's salary and paid to the IRS, while another part is paid by the employer on behalf of an employee.

In most places yes, although the employee may have to contribute too.

For the employee, it's 241.28, and there's a like amount paid by the employer.

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

The employer and employee both contribute to the fund.

The maximum FICA tax for 2011: 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

There is no lower limit. You pay from dollar one. And just to clarify - the employer does NOT pay federal income tax on pay to an employee. He "withholds" income tax from the amount of pay he gives the employee (that is an estimate of what will be paid by the employee at tax filing according to the W-4 provided by the employee), and sends that to the IRS. Other than the cost of doing so, it costs the employer nothing. In fact, the entire reported payroll for the employee is probably the most acceptable tax deduction for the employer that there is! There may well be other payroll taxes or fee's - like FICA or unemployment, etc that he employer does pay out of his own funds.

Yes, they can. It is possible that the training expenses would be tax deductible. You would need to check with a tax professional regarding that aspect of course. Otherwise, payment should be made on a 60-40 or 50-50 basis where in 60% will be paid by your employer and the remaining is to be paid by the employee.

Federal Unemployment tax (FUTA) is levied on the employer at 6.2% of wages paid up to $7000 per employee per year.

benefit is that,when a person engage in a company as executive or manager he must be count as professional, so employer engage professional so thatswhy, a profession must be pay some tax through employer. in this tax employee benefits some tax as well as employer .

The FICA rate for employees of any business is 6.2% for the employee and 6.2% for the employer to each pay. The employee will have the tax withheld from their pay check and the employer will add their portion when a deposit is made monthly or more often depending on the amount owed by business. Some years ago the FICA (Social Security Tax) and Medicare Tax was separated. The Medicare tax is 1.45% for each the employer and employee in the same method. The only difference is that the Social Security tax is imposed on the the first $113,700 of income that an employee is paid during a calendar year and the Medicare tax is imposed on all income without a limit.

Form 940 is Employer's Annual Federal Unemployment (FUTA) Tax Return. It's a two-page form for reporting the employer's federal unemployment tax liability on the first $7,000 paid to each employee during the calendar year. Part 1 asks if the employer also has paid state unemployment tax, in addition to FUTA. Part 2 determines the employer's FUTA tax on the total taxable FUTA wages (up to $7,000 per employee) at .8 percent (.008). Part 3 determines if the employer can receive a credit on the FUTA tax rate for having paid state unemployment tax. Part 4 determines if the employer has a balance due or an overpayment on the FUTA already paid for the year.

Depends. If you paid the premiums with after-tax dollars, then the payouts are tax-free. However, if your employer paid them and did not dedcut them from your pay, then your payouts are taxable. In addtion to that, if you split the cost of the premiums with your employer, and your half was paid with after-tax dollars, than the same percentage your employer paid is the percentage of payout that becomes taxable.

No. Unemployment benefits are paid from a state fund that receives its input from a payroll tax, charged to the employer, never the employee.

The federal unemployment tax is paid entirely by the employer, being reported annually on a Form 940 filed no later than January 31st.

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

6.2% for the employee, and an identical amount for the employer (not including Medicare)

Yes, employer paid disability insurance plans are normally paid with pre-tax money, therefore the benefits will be taxed.

None. Federal Unemployment tax (940) is an employer-paid tax.

An employer matches the amount of FICA (Social Security) and Medicare taxes which are 6.2% and 1.45% of your gross income respectively. The same amount is paid by the employer and the employee toward these two taxes. Only the employee pays their Federal, State, and/or Local Income tax withholding but the employer is responsible for withholding these taxes and remitting all of them to the IRS on a timely basis.

You should consult with a tax specialist, but generally employer paid disability insurance benefits are taxable.

when it comes tax time they have to provide it!! <3

Currently, there is a 1.45% tax on income which is matched by your employer. So in total, there is 2.9% being paid into Medicare. If you have more questions you can ask your employer.

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