2007-02-07 15:16:48 · 3 answers · asked by prisdiaz 1 in Business & Finance ➔ Taxes ➔ United States
FICA is divided into two components. Social Security and Medicare. The SS rate is 6.2% and the Medicare rate is 1.45% for a combined rate of 7.65%. This is paid by both the empolyer and employee. If you are self employed, the combined rate is 15.3%
SS is collected on the first $94,000 for tax year 2006. Medicare is collected on all earned income.
2007-02-07 15:23:27 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
FICA tax (social security) is 6.2% of your taxable wages. This is the same amount for everyone. It does cap out once you hit around $97,000 or so, so once you reach that amount of wages, you are no longer subject to social security. Medicare tax is 1.45% of your taxable wages, with no wage cap.
If you are an independent contractor and are subject to self employment tax, then double the tax rates above.
2007-02-07 23:25:01 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
Fica is 6.2% of social security wages; up to $94,200 wage limit; Medicare is 1.45% of wages; there is no limit on wages
2007-02-08 02:17:41 · answer #3 · answered by tma 6 · 0⤊ 0⤋