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How are fica taxes calculated

how are fica taxes calculated

The information provided and interactive calculators are intended to serve as self-help educational tools for illustrative purposes only and are not intended to project investment results, or to provide legal or investment advice. Your circumstances are unique, therefore, you need to take your personal information into account when reviewing the information provided. Different assumptions concerning earnings, taxes, investment rate of return, and retirement age will impact the results. Also, rates of return and your personal circumstances will most likely change over time, so review your financial strategy periodically to be sure your strategy continues to fit your situation. Please note that high projected rates of return includes a higher degree of risk to principal.


Pay period This is how often you are paid. Your selections are: Weekly (52 paychecks per year), Every other week (26 paychecks per year), Twice a month (24 paychecks per year), Monthly (12 paychecks per year), and Annually (one paycheck per year).

Filing status This is your income tax filing status. The choices are 'Single' and 'Married'. Choose 'Married' if you are married or file as 'head of household'. Choose 'Single' if you file your taxes as a single person or if you are married but file separately.

Gross pay This is your gross pay, before any deductions, for the pay period. Please enter a dollar amount from $1 to $1,000,000.

Number of allowances When your Federal income tax withholdings are calculated, you are allowed to claim allowances to reduce the amount of the Federal income tax withholding. In 2012, each allowance you claim is equal to $3,800 of income that you expect to have in deductions when you file your annual tax return. The number of allowances you should claim depends largely on the number of dependents you have and your itemized deductions. This calculator allows from 0 to 99 allowances.

457 plan withholding This is the percent of your gross income you put into a taxable deferred 457 retirement plan. While increasing your retirement account savings does lower your take home pay, it also lowers your Federal income tax withholdings. The impact on your paycheck might be less than you think. While your plan may not have a deferral percentage limit, this calculator limits deferrals to 80% to

account for FICA (Social Security and Medicare) taxes. Please note that your 457 plan contributions may be limited to less than 80% of your income. Check with your plan administrator for details. For 2013, the maximum contribution to a 457 plan is $17,500 per year for individuals under 50 and $23,000 for individuals 50 or older.

Employee paid health insurance Health insurance premiums deducted from your pay. Do not include any amounts paid directly by your employer. Your health insurance premiums are not subject to FICA or Medicare taxes.

State and Local Taxes This is the percentage that will be deducted for state and local taxes. We take your gross pay, minus $3,800 per allowance, times this percentage to calculate your estimated state and local taxes. Please note, this calculator can only estimate your state and local withholdings.

Post-tax deductions Enter any payroll deductions made by your employer that are made with after-tax income.

Post-tax reimbursements Enter any reimbursements made by your employer that are after tax.

FICA OASDI FICA Old Age Survivors and Disability Insurance. For 2012, FICA OASDI is calculated as your gross earnings times 4.2%. This is a temporary reduction from 6.2%. This tax may revert back to 6.2% as early as March 2012. Please note that this calculator does not make any assumptions as to the total FICA OASDI paid for the current year. For 2012, incomes over $110,100 that have already had the maximum FICA OASDI amount of $4624.20 withheld will not have additional FICA OASDI withholdings.

FICA Medicare FICA Medicare is calculated as the gross earnings times 1.45%. Unlike FICA OASDI, there is no annual limit to FICA Medicare deductions.

Federal tax withholding calculations Federal income tax withholdings were calculated by:

  1. Multiplying taxable gross wages by the number of pay periods per year to compute your annual wage.
  2. Subtracting the value of allowances allowed (for 2012, this is $3,800 multiplied by withholding allowances claimed).
  3. Determining your annual tax by using the tables below (single and married rates, respectively).
  4. Dividing the amount of tax by the number of pay periods per year to arrive at the amount of federal withholding tax to be deducted per pay period.

Single Withholding Rates*

Category: Insurance

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