Social Security and
The Federal Insurance Contributions
Act (FICA) provides for a federal system of old-age, survivors, disability,
and hospital insurance. The old-age, survivors, and disability insurance
part is financed by the social security tax. The hospital insurance
part is financed by the Medicare tax. Each of these taxes is reported
Generally, you are required
to withhold social security and Medicare taxes from your employees’
wages and you must also pay a matching amount of these taxes. Generally,
employee wages are subject to social security and Medicare taxes regardless
of the employee’s age or whether he or she is receiving social
Tax rates and the
social security wage base limit.
Social security and Medicare taxes have different rates and only the
social security tax has a wage base limit. The wage base limit is the
maximum wage that is subject to the tax for the year. Determine the
amount of withholding for social security and Medicare taxes by multiplying
each payment by the employee tax rate. There are no withholding allowances
for social security and Medicare taxes. The employee tax rate for social
security is 6.2% and 4.2% for 2011 (amount withheld). The employer tax
rate for social security is also 6.2% (12.4% total, 10.4% for 2011).
The employee tax rate for Medicare is 1.45% (amount withheld). The employer
tax rate for Medicare tax is also 1.45% (2.9% total). There is no wage
base limit for Medicare tax; all covered wages are subject to Medicare
It Easy to Pay and File Your FICA Taxes
Your FICA withholding and
income tax can be paid electronically through your SuperPayroll account.
Reminders will be sent to you when they become due. You just click a
key to pay them.
You can file Form 941 electronically
with a click in your SuperPayroll account.
Learn more about our online
payroll for small businesses.
Click here for more information
about payroll taxes, federal
payroll taxes, payroll deductions, payroll
tax calculator, and state payroll taxes.
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