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SR 13-02 Dated 01/13 |
Previous Policy |
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FIT (Federal Income Tax) |
FICA (Medicare Tax) |
FICA (Social Security Tax) |
FEDERAL Minimum Wage |
|
See IRS Circular E |
1.45% |
7.65% |
$7.25/hour |
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1. Self-employed individuals pay a FICA withholding amount of 15.3% (2.9% for Medicare and 12.4% for Social Security tax), but they deduct one-half of their FICA tax paid on their federal income taxes. This reduces their FICA contribution to 7.65%. 2. The income ceiling subject to the full FICA withholding rate is $113,700. 3. There is no upper limit to the amount of gross earned income from which Medicare may be withheld. |