FICA/Medicare Withholding
- In addition to income tax, employees are subject to two other payroll
deductions - FICA and Medicare - unless an exemption applies.
-
The current rates are:
| Name |
Description |
Current Rate |
Maximum Amount Taxable |
FICA |
Federal Insurance Contributions Acts; also referred to as Social
Security tax |
6.20% |
$94,200 (2006) |
| Medicare |
Federal health insurance program for certain individuals age
65 or older |
1.45% |
All earnings |
-
Employees and employers each contribute at the same tax rate for
FICA and Medicare. That means the total amount collected is 12.4%
for FICA and 2.9% for Medicare.
-
To read more about FICA and Medicare, see the Social Security website
at: http://www.ssa.gov.
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