Table H: Federal Taxes, Income Ceilings, and Federal/State Minimum Wages (FAM)

SR 15-02 Dated 01/15

Previous Policy

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FIT

(Federal Income Tax)

FICA

(Medicare Tax)

FICA

(Social Security Tax)

FEDERAL

Minimum Wage

STATE

Minimum Wage

See IRS Circular E

1.45%

7.65%

$7.25/hour

$7.25/hour

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 $118,500.

3.  There is no upper limit to the amount of gross earned income from which Medicare may be withheld.

 

References: RSA 167:4,I(a), RSA 279:21, 26 USC 3101, 26 USC 3111, 29 USC 206