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The wage base limit for social security tax withholding for 2008 is $102,000. The withholding is 6.2%, so the maximum per employee for the year is $6,324. Any amount withheld beyond that limit due to multiple employers is available as a credit against your income tax. If one employer erroneously withheld excess social security tax, that employer should make the correction.
What else can I help you with?
What is income tax paid for?
estate Social Security tax A+
Is social security a regressive or proportional tax?
Social Security Taxes are a Proportional Tax. A Percentage of a person's income is paid to Social Security, this is half of the total amount paid to them, the Other half of a person's Social Security Tax is paid by the Employer.
What tax is paid for retirement income?
estate Social Security tax A+
What is MED FICA tax?
MED tax is the tax that is paid to Medicare. FICA tax is the tax paid to pay for Social Security benefits.
Which taxes are paid by both the employer and employee at the same rate?
Social Security tax & Medicare tax
How much does social security tax take from a 815.00 paycheck?
How much tax on 815.00
Did Social Security withholding go down on payroll checks?
A one-year reduction in Social Security withholding from individuals (not from their employers) was included in the Tax bill that was passed by Congress at the end of 2010. The lost tax income to Social Security will supposedly be paid to the Social Security Trust fund out of general tax revenues.
What is the difference between income tax and social security tax?
Income tax is a tax paid on earnings from employment, investments, or other sources of income, and is used to fund government operations. Social Security tax is specifically used to fund the Social Security program, which provides benefits to retirees, disabled individuals, and survivors of deceased workers. While income tax is based on overall income, Social Security tax is specifically withheld from wages to fund the Social Security program.
How much does social security cost per year?
For 2008, the maximum social security tax withholding for an individual is $6,324, the tax on $102,000. For 2009, the maximum social security tax withholding for an individual is $6,622, the tax on $106,800.
Which tax withholding is required by the US Federal government?
You are required to have paid in at least a total equaling 90% of your total income tax paid in the previous tax year. If you do not have at least that much paid and applied to your tax for the current year through withholding and estimated tax payments then you will be subject to a tax penalty plus interest.
What form do Social Security recipients get at tax time other than a W-2?
Social security recipients do not get a W-2 form. At tax time recipiants should receive a Form SSA-1099 for Social Security benefits paid.
Do you have to file a tax return if you are collecting social security disabilitybenefits?
yes, no income stands alone. So it is reported as income, but you may not have to pay taxes on it, it depends on how much total income you have and then how much taxes you have paid. Benefits can be paid with no tax withheld or with tax withheld, it's your choice. It all depends on how much income you make.
