Earings tax W4 ( FICA , FED WT, VA ST) ?

Question

I have some serious confusion about the tax that i pay from my earnings. I work as a software consultant. Plz can you make some time and do some calculations as per the numbers that reflect my paystub. Below mentioned pay is for 2 weeks(15 day) period pay details. Its the recent pay slip and this is same as earlier ones.

SALARAY::: Gross $ 4160

TAXS & DEDUCTIONS:
FICA 318.24
FED WT 807.44
VA ST 216.69

TOTAL Deductions = 1342.37

Net pay is : $ 2817 ( 4160- 1342.37)

The pay roll is run by ADP.
In W4 form filled by me, option A,B,E are checked by me.

As per deductions i see, that tax cut seems to be around 33%. Why is it much high.?
Plz can some one explain about the deductions and reason for why am i paying more tax than my frnds who are equal to my gross pay. Am i also paying the employer tax as well which otherwise my emplyer should pay.?

thanks for your time

Earning Tax

I am an employee...
.I hear that , at the end of year when we claim taxes, federal Withholding would be crediting back some amount if it feels they owe me ..
Also, during a complete Tax year, what would be the avg tax that i would be paying.. I keep hearing from others that on avg 23-25 % goes in tax. and now presently i am paying >33%. Can you explain this even..

Answer 1

Your taxes are so high because you make so much money! FICA is the same percent no matter how much you make until you hit the social security limit. Both federal and VA income tax are higher for high income earners than low income earners. You are well into the highest bracket for VA, and a high bracket for federal.

I'm a little confused at why they are withholding taxes if you are a contractor and paying the employer tax - which are you, a contractor or an employee? If you filled in a W-4, and they're withholding tax, sounds like they have you down as an employee, at which point THEY, not you, would pay the employer taxes.

Your friends might have different personal situations, with different entries on their W-4's to cause their taxes to be less.

Answer 2

it's high because you're making 96,000 per yr. I don't know what A, B & e are on the w-4, but maybe your friends are married with kids and can claim more exemptions, or they have a mortgage and know how much they can decrease their federal wh tax and still break even - You're not giving enough info to fully research it. Virginia also seems to have a high state income tax looking at your state withholding. Talk to a tax accountant to make sure you won't be owing any tax come tax return time

Answer 3

All the numbers are in line with what they should be. Your half of FICA is 7.65%. Federal is in line with what a single person with no dependents should expect. Virginia is usually in the 5% ball park, so that's ok too.

Your friends may make similar amounts but may have different conditions, like children and being married that affects their withholding.