What is the difference between FICA & Federal Withholding Tax?

Answer 1

FICA or (Federal Insurance Contributions Act) tax is a payroll (or employement) tax imposed by the US federal government to fund Social Security and Medicare. This tax is 7.65% of wages up to $97,500 for 2007 (and 1.45% of any wages over $97,500). You will not get a refund of any FICA taxes however payment into FICA gives you credits to receive social security when you qualify through retirement, disability or death.


Federal Withholding Tax is the tax that employers are required to withhold that is a prepayment of each employee's income tax. According to Wikipedia:

The amount of a person's federal income tax withholding depends on several factors such as:

The taxpayer's marital status.
The number of children or dependents the taxpayer has.
Whether or not he is an employee IRC 3401.
If the taxpayer wants to claim child tax credits.
If the taxpayer holds two or more jobs.
If the taxpayer plans to itemize.
Any tax exemptions from withholding that the taxpayer wants to claim.
Any additional amount the taxpayer wants to withhold.

A taxpayer will get a tax refund if the withholding for the year was greater than the income tax actually owed.

I hope that helps.

Answer 2

Federal Fica Withheld

Answer 3

This Site Might Help You.

RE:
What is the difference between FICA & Federal Withholding Tax?

Answer 4

The federal withholding is for income tax and FICA pays the Social Security tax and medicare tax. The FICA tax has to be matched by your employer, so whatever is deducted from your pay for FICA, double the amount is paid to the IRS.

FICA is limited to the first $102,000 of earnings. 6.2 percent is for Social Security and 1.45% is for medicare. Beyond $102,000 the employeer stops making the deduction. Tax withholdings continue however. When you file your tax return, the withheld amount is already paid so if your tax is lower you get a refudn, and if it is higher, you pay the remainder.

Answer 5

FICA is basically your Social Security tax. Federal withholding is your tax to the federal government.

Answer 6

FICA is the amount they deduct for Social Security and Medicare. Federal withholding is the amount they withhold for your federal income tax. State withholding, if any, is the amount withheld for your state income tax. Most people have all of the above deductions.

Answer 7

FICA is a tax for social security & Federal Witholding Tax is income tax.

Answer 8

FICA is social security. The other is federal government tax.

Answer 9

Both are taxes paid to the Federal government but only the Federal Withholding is refundable (in whole or in part) by filing a tax return. Use this number if you are trying to estimate your refund.

Answer 10

Hi Belinda Z I've read about that, Here you can find exactly what you are looking for http://tax-faq.net?k=20071228054547AA76nw5 it explains a lot Best