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joeu2004 joeu2004 is offline
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Default Social Security Annual Payroll Tax Formula

On Mar 18, 9:20 am, "joeu2004" wrote:
1. At best, that is FICA tax from the __employee's__ perspective, not
the employer's. That is, it is the amount withheld from the
employee's wages. From the __employer's__ point of view, FICA is paid
at the rate of 15.3% -- applying the same over-simplification that you
are. Typically, this is accomplished by taking half from the
employee's wages and contributing half from the employer's cash.


In email, Jennifer points out that my point above is a bit of a
nitpick. After all, isn't "half" of 15.3% simply 7.65%?
(Rhetorical.) Technically, not exactly, if only due to rounding the
employee's deduction to a penny. But I probably should not have
mentioned it all. It's a "hot button" for me recently because of an
issue I have been having with someone who wants to bend the IRS rules
by underwithholding the employee's FICA tax deduction. Much ado about
nothing. Mea culpa!