What percent should be deducted from unemployment?

Answer 1

The amount taken out for social security is 6.2%. For medicare is 1.45%. Total taken out for both amounts is 7.65%.

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 in from other wage considerations in many ways, (it has a top limit of about 100K, how pension contributions factored, State taxes, etc. all may be different income for FICA than other taxes).

If you are an employee, the employer MUST pay half of the contribution (7.65%). 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.

Answer 2

The unemployment benefit you receive depends on the "liable state" you work in, and each state has its own formula for determining it. Contrary to popular belief, there is NO deduction from a worker's paycheck for unemployment, as the employer, ONLY, pays through an unemployment tax to the state it does business in. The state then pays unemployment benefits from the pool of those generated tax revenues. The amount you receive in compensation depends on several factors and the period you receive benefits is set by law and generally is for up to a 26 week period in a benefit year of 52 weeks, unless extended by federal law or emergency legislation. The benefit is taxable, but the amount payable to the IRS depends, as any other type income, on your tax rate, the amount received, etc.

Answer 3

It is the employER who pays unemployment taxes, not the employEE,

based on the turnover rate of his employees. This encourages him to retain his workers.