2007-02-01 19:55:16 · 5 answers · asked by dragon67 1 in Business & Finance ➔ Taxes ➔ United States
The SS and Medicare taxes apply to every dollar earned. Lower income taxpayers often pay much more in SS tax than Federal income tax. If your wages are less than $8,450 there is no Federal liability at all but at that wage you would pay $646.00 in SS and Medicare taxes -- $524 would be SS tax.
2007-02-01 23:20:36 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 1⤋
There is no relationship between the two taxes. Social Security tax is 6.2% of your wages. Federal Income Tax withholding is whatever you requested it to be when you filled out your Form W-4 when you were hired. The more allowances you indicated, the less will be withheld. Also, if you work part-time, you may not be making enough to trigger much withholding.
To see how Federal Income Tax withholding is calculated for your pay checks, see Publication 15 (Circular E).
2007-02-02 04:06:14 · answer #2 · answered by dragonwych 5 · 0⤊ 0⤋
The employee portion of the SS tax is 6.2%. The Federal Income Tax withheld depends on the deductions you put on your w-4 form (i.e. 0 or 9).
Unless you have massive deductions you should have more than 7% withheld from your paychecks for federal income tax.
2007-02-02 04:03:08 · answer #3 · answered by Michael 2 · 0⤊ 1⤋
It depends on your income. If you are fairly low-income, you might not end up owing much if any income taxes, so they might not take much out. But you would still have to pay social security taxes.
2007-02-02 20:49:47 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
social security tax is 6.2% of the first $94,200 of wages. it cannot exceed $5,840.40
federal tax withheld is usually higher, but it depends on how you filled out your W-4.
2007-02-02 07:32:33 · answer #5 · answered by tma 6 · 0⤊ 0⤋