document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1206886>Question 1206886</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 2016 FICA Tax Rates1<BR>\n" );
document.write( "Employee's Rates	Matching Rates Paid by<BR>\n" );
document.write( "the Employer	Self-Employed Rates<BR>\n" );
document.write( "7.65% on first $118,500 of income<BR>\n" );
document.write( "1.45% on income above $118,500<BR>\n" );
document.write( "7.65% on first $118,500 paid in wages<BR>\n" );
document.write( "1.45% on wages above $118,500<BR>\n" );
document.write( "13.3% on first $118,500 of net earnings<BR>\n" );
document.write( "2.9% on earnings above $118,500<BR>\n" );
document.write( "1FICA taxes include Social Security and Medicare. The Social Security tax applies to the first $118,500 of income, while the Medicare tax applies to all income.\r<BR>\n" );
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document.write( "Suppose Nina has $207,500 of income from work and is not self-employed. How much will Nina have to pay in FICA taxes? </SPAN>\n" );
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document.write( "FICA taxes include Social Security and Medicare. The Social Security tax applies to the first $118,500 of income, while the Medicare tax applies to all income.\r<BR>\n" );
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document.write( "you're paying 6.2% for social security and 1.45% for medicare up to 118,500.<BR>\n" );
document.write( "after that, you're paying 1.45% for medicare.\r<BR>\n" );
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document.write( "your problem works out to be this:\r<BR>\n" );
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document.write( "nina has 207,500 of income from work and she is not self-employed.\r<BR>\n" );
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document.write( "she will have to pay 7.65% on first 118,500 of income.<BR>\n" );
document.write( "this take into account social security and medicare plus she will have to pay 1.45% on medicare for any income above 118,500.\r<BR>\n" );
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document.write( "that becomes .0765 * 118,500 + .0145 * 89,000 = 10,355.75.\r<BR>\n" );
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document.write( "you could also look at it as 6.2% for social security up to 118,500 plus 1.45% for medicare with no upper limit.\r<BR>\n" );
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document.write( "that becomes .062 * 118,500 + .0145 * 207,500 = 10,355.75.\r<BR>\n" );
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document.write( "10,355.75 is your solution.\r<BR>\n" );
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document.write( "i looked up 2016 fica on the internet this is what it says.\r<BR>\n" );
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document.write( "<a  rel=nofollow HREF= \"https://sfcontroller.org/sites/default/files/Documents/payroll/EmploymentTaxWage2016.pdf\" target = \"_blank\">https://sfcontroller.org/sites/default/files/Documents/payroll/EmploymentTaxWage2016.pdf</a>\r<BR>\n" );
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document.write( "you captured it correctly except for employer's rate which was 15.3% instead of 13.3% for employer tax rate for social security.\r<BR>\n" );
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document.write( "if you are self-employed, you pay the employee's part plus the employer's part.\r<BR>\n" );
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