Table H: Federal Taxes, Income Ceilings, and Federal/State Minimum Wages (FAM-A) |
FIT (Federal Income Tax) |
FICA (Medicare Tax) |
FICA (Social Security Tax) |
FEDERAL Minimum Wage |
STATE Minimum Wage |
See IRS Circular E |
1.45% |
7.65% |
$7.25/hour |
$7.25/hour |
1. Self-employed individuals pay a FICA withholding amount of 15.3% (2.9% for Medicare and 12.4% for Social Security tax), but they deduct one-half of their FICA tax paid on their federal income taxes. This reduces their FICA contribution to 7.65%. 2. The income ceiling subject to the full FICA withholding rate is $147,000. 3. There is no upper limit to the amount of gross earned income from which Medicare may be withheld. |
References: RSA 167:4,I(a), RSA 279:21, 26 USC 3101, 26 USC 3111, 29 USC 206