If neither one of these are taken out of my checks, or if FICA is taken out, but not U.S. Inc. Tax....or Vice Versa what does that mean?
What will it mean come Income Tax time?.....
Will I get in trouble if they are doing the taxes wrong or will they?
2006-10-05 23:17:00 · 3 answers · asked by mysticfairy74 5 in Business & Finance ➔ Taxes ➔ United States
US Income Tax, aka Federal Withholding, this tax is withheld from your paycheck. Based on the gross amount of your check, how frequently you are paid (weekly, everyother week, monthly), and the exemptions you claimed on your W-4 that you should have filled out when you were hired. The lower your income, the lower this amount will be and it could be zero if you have enough exemptions, or don't make much money. The income tax is the amount that you MAY get back when you file your taxes at the end of the year. But be prepared, if you are single, you won't be seeing any money coming back!
FICA, aka Social Security and Disability taxes, these are withheld no matter how much you make or how many exemptions you claim. The total percent taken out of your pay is 6.2% plus 1.45% for the medicare portion. These taxes are matched by your employer and sent away to Washington. Maybe someday, if the baby boomers don't use it all up, you will get Social Security and see some of your money come back, but don't count on it!
If your employer does the taxes wrong, you will be responsible for fixing it, because your employer doesn't know what other income you may have that would effect how much should be withheld to begin with. Unless you are working for a brand new company that has never filed employment taxes before the odds of them screwing up FICA/Med are slim.
Enjoy your new job!
2006-10-06 00:12:23 · answer #1 · answered by Gem 7 · 3⤊ 0⤋
FICA is social security, unemployment insurance medicare and medicaid, it is paid by both the employee and the employer.
Income tax is based off of your annual earnings is only paid by the employee.
Between Jan 2007- 15 April 2007 You'll have to file your taxes, your employer will send you your W2s, you'll also need to include things like investments, etc...
Ultimately YOU are responsible for your taxes... I was audited once and I owned money even though my taxes were prepared for me...I didn't know I had to claim something and apparently the preparer didn't know either.
2006-10-05 23:28:26 · answer #2 · answered by i_love_my_mp 5 · 0⤊ 0⤋
US income tax is the tax for government support, FICA is for social security. If the tax is not being withheld you will have to pay it when you do your tax return. If FICA is not being paid you will not be able to get Social Security or any type of assistance from the government when you retire or now if you were to become disabled.
2006-10-05 23:27:54 · answer #3 · answered by Billy 4 · 1⤊ 0⤋