What is the Social Security tax rate for 2008?
The Social Security tax rate (excluding the Medicare tax) for employees will remain at 6.2%. However, in 2008 the maximum amount of employee earnings that is subject to the social security tax will be $102,000. (In 2007 the rate was 6.2% on the first $97,500 of earnings.) Since the Social Security tax is withheld from employees and it is matched by the employer, the total Social Security tax (excluding Medicare tax) is 12.4% on the first $102,000 of wages, salaries, etc in 2008.
The Medicare tax rate remains at 1.45% on all earnings. The Medicare tax of 1.45% is withheld from every dollar of employees’ earnings (wages, salaries, etc.) and is also matched by the employer. This results in the total Medicare tax of 2.9% on all employees’ earnings in 2008.
The combined Social Security and Medicare tax, also known as FICA, will be 7.65% withheld from employee earnings up to $102,000 in the year 2008. With the employer’s matching, the total combined Social Security and Medicare tax will be 15.3% on the first $102,000 of earnings in 2008. Each employee’s earnings above $102,000 will be subject only to the Medicare tax.
Self-employed individuals are responsible for both the employee and the employer portion of these taxes.
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thank you for this info. i was a former volunteer and now an employee, our finance adviser/bar manager has no clue what he is doing and told me that 11.00 would be taken from my 75.00 pay check for fica,, i dont think so….
i will surely straighten this out with him.
Can I offset stock sale LOSSes from capital gains in a different category? such as interest and dividend 1099 c ap gains MINUS the stock losses = net balance of cap gains for 08 which I have to pay extra tax?
what are those elements of merchandise business
Do you have cpa material if so what is the total price?
Do you do the online classes if so what is the complete price?
You will find a link to free CPA review material by going to the “Helpful Links” tab on AccountingCoach.com.
Can you tell me why Social Security deducted is based on Gross wages, which includes tips, but reported Social Security wages reported in Box #3 of the W-2 does not include tip wages?