Thoughts, Ideas, and Concepts by Sandra Parks

Posts tagged ‘Payroll’

MORE ON PAYROLL TAXES

Payroll Taxes

Payroll Tax Rates
Social Security tax rate 6.20%
Medicare tax rate 1.45%
Total payroll taxes 7.65%

 

If an employee earns $1,000, the payroll taxes are:

Social Security tax $62.00
Medicare tax $14.50
Total payroll taxes $76.50

The employer sends the $76.50 to the federal government.
TIP:

There is a maximum annual amount of Social Security tax withheld per employee. Social Security taxes are not withheld on amounts over the earnings limit. For 2008, the earnings limit was $102,000, and the maximum Social Security tax was $6,324 ($102,000 X 6.2%). There is no limit on the amount of wages subject to Medicare tax.

 

For more informaton please visit http://saptaxes.net or contact me at 972.569.7938

PAYROLL TAXES!!!!

Payroll taxes include the Social Security tax and the Medicare tax. Social Security taxes provide benefits for retired workers, the disabled, and the dependents of both. The Medicare tax is used to provide medical benefits for certain individuals when they reach age 65. Workers, retired workers, and the spouses of workers and retired workers are eligible to receive Medicare benefits upon reaching age 65. Federal income taxes are used to provide for national programs such as defense, community development, and law enforcement.

Can you answer these questions?  Answer will be released tomorrow.

  1. Employees decide when to pay their payroll taxes.
  • A. True
  • B. False
  1. Federal income taxes are used to pay the interest on the national debt.
  • A. True
  • B. False
  1. The Medicare tax rate is 1.45% of gross pay.
  • A. True
  • B. False
  1. Employees use Form W-4 to prove that they are eligible to work in the United States.
  • A. True
  • B. False

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