Table H: Federal Information, Taxes, Income Ceilings, and Minimum Wage Standards SR 10-02, 01/10 (FSM-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 $106,800. 3. There is no upper limit to the amount of gross earned income from which Medicare may be withheld. |