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Simple English definitions for legal terms

FICA Tax

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A quick definition of FICA Tax:

Term: FICA Tax

Definition: FICA taxes are taxes on wages that help pay for Social Security and Medicare. Social Security taxes are 12.4% of an employee's wages up to a certain amount each year, and Medicare taxes are 2.9% on all wages. Both the employee and employer pay part of these taxes. If someone is self-employed, they have to pay both parts of the taxes, but they can deduct the employer part as a business expense.

Example: If you earn $50,000 a year, you and your employer will each pay $3,100 in Social Security taxes and $1,450 in Medicare taxes.

A more thorough explanation:

Definition: FICA taxes are taxes on wages that fund Social Security and Medicare. These taxes are required by the Federal Insurance Contributions Act. Social Security taxes and Medicare taxes are separate and operate differently. Social Security taxes are 12.4% of an employee’s wages up to a certain amount each year, which is currently $142,800 as of 2021. The tax is split with the employee and employer each paying 6.2%. Medicare taxes are 2.9% on all wages and split 1.45% between employer and employee. However, if a person’s wages exceed $200,000, an extra 0.9% Medicare tax applies for the employee to pay. If someone is self-employed, they must pay both the individual and employer parts of FICA taxes, but they can deduct the employer portions as business expenses.

For example, if an employee earns $50,000 per year, their employer will withhold $3,100 in Social Security taxes and $725 in Medicare taxes from their paycheck. The employee will also pay $3,100 in Social Security taxes and $725 in Medicare taxes, for a total of $7,650 in FICA taxes.

Another example is if a self-employed individual earns $100,000 per year, they will have to pay both the employee and employer portions of FICA taxes. This means they will owe $12,400 in Social Security taxes and $2,900 in Medicare taxes, for a total of $15,300 in FICA taxes.

These examples illustrate how FICA taxes are calculated and how they affect both employees and self-employed individuals.

Fiallo v. Bell | FICO

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Dkk
23:59
Welcome! It really is a great school. Much more to explore than I did. Glad at leat someone will like it.
Ya i love LA i am here for the long haul probably
Dkk
0:00
La Table De Sophie & Bicycletta have gone out of business but everything else should be there.
Dkk
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I will ask though, if you lived in NY, best restaurants for you there?
Dkk
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I plan on doing the reverse. Going west coast to east coast when you did east coast to west.
Cosme and fiaschetteria pistoia are my favorites!
Love Waverly inn too and Cafe Cluny
i lived in west village so all those are in WV but Cosme is more flatiron
Also love Sushi Hatsune for sushi delivery
Oh and a great whole in the wall is K-jun, cajun/korean fushion in koreatown
Dkk
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Excellent, I took a screenshot. I will figure out later.
@Ijustwannagetinman: banned on hinge fun fact
Dkk
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@Ijustwannagetinman: banned on tinder fun fact
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all my friends have it though
Dkk
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A dating app for "high profile individuals" hmmm....
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Dkk
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@CurvyHypnoticSheepdog: This man is established.
@Dkk: we're some lowlifes
can't even say I have a half baked situationship
Dkk
0:11
Indeed, we are the lowest of the lowlifes but we have the potential to be the highest of the high lifes.
maybe I find my wife in law school
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i may not be a high life but i sure can chug one
chug off
gang Ive sent 15 applications in between 12/01 and 12/15 and I've yet to hear back how clapped am i
they dont even want to waste the rejection emails on me smh
Dkk
1:11
@WhyDidIGetMyCPA: Don't expect shit till mid february.
Dkk
1:11
I sent shit in End of October to 1st week November and I have barely heard back.
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