Table H: Federal Information, Taxes, Income Ceilings, and Minimum Wage Standards SR 14-02, 01/14 (FAM-A)

FIT

(Federal Income Tax)

FICA

(Medicare Tax)

FICA

(Social Security Tax)

FEDERAL

Minimum Wage

See IRS Circular E

1.45%

7.65%

$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 $117,000.

3.  There is no upper limit to the amount of gross earned income from which Medicare may be withheld.