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Median household income and taxes. The Federal Insurance Contributions Act (FICA / ˈ f aɪ k ə /) is a United States federal payroll (or employment) tax payable by both employees and employers to fund Social Security and Medicare [1] —federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.
Under the Affordable Care Act in 2013, an additional tax for taxpayers in the higher federal tax brackets was added to fund Medicare. The additional Medicare tax rate is 0.9%. The additional ...
1.16.1 Social Security and Medicare taxes. ... Payroll taxes are taxes imposed on ... but Congress allowed the rate to return to 6.2% for the individual in 2013. ...
Notes: Tax rate is the sum of the OASDI and Medicare rate for employers and workers. In 2011 and 2012, the OASDI tax rate on workers was set temporarily to 4.2% while the employers OASDI rate remained at 6.2% giving 10.4% total rate. Medicare taxes of 2.9% now (2013) have no taxable income ceiling. Sources: Social Security Administration [12] [13]
Since 2013, the additional Medicare tax has been applied to income above designated levels. The standard Medicare tax is 1.45% if someone is an employee or 2.9% if a person is self-employed.
Payroll tax increases: Increasing payroll taxes that fund Social Security and Medicare is another option. The last time the Social Security tax rate increased was 1990 and the Medicare tax hasn ...
Medicare tax of 1.45% is withheld from wages, with no maximum. [12] (This brings the total federal payroll tax withholding to 7.65%.) Employers are required to pay an additional equal amount of Medicare taxes, and a 6.2% rate of Social Security taxes. [13] Many states also impose additional taxes that are withheld from wages.
By Bonnie Lee Happy New Year! I don't know what you did on New Year's Eve, but we all know what Congress did: they finally hammered down some tax legislation for 2013 and beyond. These last ...