why does fica take away so much?

Question

im 19, single, and no dependents. i earn about 840 in 2 weeks(sux) and fica takes away so SO much! how can i make them take away less, and what is fica anyway?

Answer 1

FICA (Social Security) is levied at 6.2%. That works out to $52.08. Then there is Medicare at 1.45%. That works out to $12.18, for a total of 64.26. I don't know what your definition of "SP much!" is, but it's only 7.65% of your paycheck in total. That's not a heck of a lot in my book.

Social Security and Medicare are withheld at a flat rate. There's no way to get that reduced. If you manage to make some REAL money, Social Security withholdings stop at $97,500 in any tax year (2007, it will be $102,000 for 2008) and then re-start in the New Year. That's the only way to get a rate cut on Social Security taxes.

BTW, ignore the rant by J. W. H. He or she has no idea what they're talking about. Social Security withholdings have been mandatory for covered workers since the program's inception, circa 1935.

Answer 2

The Federal Insurance Contributions Act (FICA) tax is a United States payroll (or employment) tax[1] imposed by the federal government on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, the disabled, and children of deceased workers. Welcome to the working world. Like the old saying goes "There are two for sure things in life....Death & Taxes".

Answer 3

At single, with zero dependents, your
FICA-Med should be about $12.18,
and your FICA- Social Security should be about $52.08
going by the $840 gross per bi-weekly pay period you quoted.

Nothing you can do to lower those two particular taxes, sorry.

Answer 4

It's the Social Security tax, which is 6.2% of your gross income, plus an additional tax to your employer of an equal amount. There is a limit to how much of your income is subject to the tax, however. Earnings above $97,500 are not taxed. If you are self-employed, you get to pay the whole 12.4% (Medicare is another 2.9%).

You'd better get used to it! You only have about 48 more years of paying, and don't feel bad about Social Security's projected insolvency in about 20 years. You should feel priviledged to pay into a program that pays back an older generation's spending spree and never expect to see a nickel.

Answer 5

FICA, social security, and medicare will take 7.65% of your paycheck. It's a flat rate, you can't make them take less.

Answer 6

you can thank the democrats for that.. and that includes Bill Clinton, Lyndon Johnson, Jimmy Carter, Ted Kennedy, and all the other democrats who were in the majority of congress in 1965 supported president Johnson and his effort to roll Social Security into the general fund.. and it was no longer VOLUNTARY but became MANDATORY.. under Clinton.. a portion of it became TAXABLE.. so.. why does the government take so much out of your paycheck? Because thats how the democrats want it.. if you want some more bad news.. be sure and help elect either Hilliary or Obama.. I am quite sure they will be willing to balance the budget with some of your money.. if you don't believe me.. just check out the history of SS on google.. good luck