Table H: Federal Taxes, Income Ceilings and Federal State Minimum Wages SR 22-02 Dated 01/22  (FSM-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.