Do I need to pay FICA tax (payroll)? Even if I do, should the difference be this big? ~$70 --> ~$58
2006-11-25 06:13:59 · 10 answers · asked by si1enc3d 2 in Business & Finance ➔ Taxes ➔ United States
they are paying me by check and it was actually $74.25 --> $58.22
2006-11-25 06:19:28 · update #1
The previous answer is advocating that you do something illegal.
Whether or not you pay taxes has to do with how much money you make over the course of a year.
When the year is over, you can calculate your total income and see whether you owe taxes. You should do this when you file your tax return statement to the IRS, and probably one to your state government as well.
The practice of deducting taxes from the payroll is a convenience for you so that, if you owe taxes at the end of the year, you won't have to pay them all at once. (It also means that your money gets into the government's bank account and starts earning interest for the government earlier.)
So, if you believe that you won't be making enough money over the course of the year to have to pay taxes on it, you can ask for no deductions. But then if it turns out that you do make enough money that year, you're still responsible for paying taxes, and you'll have to send a check along with your tax return.
If you do get deductions and then you find out that you didn't make enough money that year to pay taxes, you can get your money back when you file your tax return.
2006-11-25 06:21:34 · answer #1 · answered by drshorty 7 · 0⤊ 0⤋
FICA and medicare come out to about 7%, so 70*7%=$4.90 cents. This should not reduce your taxes to $58. Look at the paystub that should have come with the check. Perhaps they withheld federal and state income tax.
2006-11-25 06:23:05 · answer #2 · answered by Chappaquiddick 2 · 1⤊ 0⤋
Put in plain English. You must pay FICA & Medicare taxes as lonfg as you are on a w - 2. The percentage owed is less than 10%.
2006-11-25 06:58:03 · answer #3 · answered by bob h 5 · 0⤊ 0⤋
33% is about right for a high school student.
What you can do is fill out your W-4 form for 3 dependents, so you will get a little more money.
If you do 9 then you will have to pay taxes again in April.
Make sure your Dad claims you also.
2006-11-25 07:28:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
you're legally obligated to record your earnings. in case you record it as self employment you will could desire to pay the two your and your employers portion of social protection and medicare plus your state and federal taxes. despite if it particularly is not stated you're actually not accruing social protection credit and are not secure with unemployment assurance. once you're caught you will pay all kinds of fines and effects. you could document an SS8 with the IRS and that they'll do a decision while you're an worker or not. your corporation will could desire to pay their section in spite of each little thing and could be hit with great fines. you could assume to lose your job maximum in all probability.
2016-12-29 11:40:10 · answer #5 · answered by frahm 3 · 0⤊ 0⤋
It depends on how much you make. But remember it would probably be to your benefit because what ever you put into federal taxes you get back even if your parents claim you.
2006-11-26 10:08:57 · answer #6 · answered by shaydzofluv 2 · 0⤊ 0⤋
YES... anything over $600 a year needs to be claimed. It could vary as per state but pretty much that is FEDERAL guidelines.
2006-11-25 11:47:43 · answer #7 · answered by Kitty 6 · 0⤊ 0⤋
you can file and recover all taxes paid on income under 9000.00
but social security is withheld... that is for your future retirement.. or poss disability if anything happens
2006-11-25 07:52:33 · answer #8 · answered by cork 7 · 0⤊ 0⤋
It depends if they are paying you by check or under the table. If it's just cash under the table, then no.
2006-11-25 06:15:41 · answer #9 · answered by arbolito 3 · 0⤊ 1⤋
Yes you do, if your wroking you will have to pay that tax.
2006-11-25 07:24:22 · answer #10 · answered by ♥!BabyDoLL!♥ 5 · 0⤊ 0⤋