Table H: Federal Taxes, Income Ceilings, and Federal/State Minimum Wages SR 23-02 Dated 01/23

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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 $160,200.

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