|
|
|
2007 fica tax rates |
| Although the FICA tax rate does not increase,
it's maximum wage base increases to $97,500 for the year 2007, increasing
the maximum tax to $6,045. Medicare remains the same. |
|
| Tax |
Tax Rate |
Maximum Wage Base |
Maximum Tax |
| Social Security |
6.20% |
$97,500 |
$6,045 |
| Medicare |
1.45% |
No limit |
No ceiling |
|
| |
FICA tax is a combination of a 6.2% social security tax and a
1.45% Medicare tax. The social security tax is assessed on wages up to
$97,500; the Medicare tax is assessed on all wages. Employers and
employees are both liable for FICA taxes at the rates given above.
Self-employed individuals pay a self-employment tax which is the
equivalent of FICA tax. For 2007, they will pay a 12.4% OASDI tax (the
old age, survivors, and disability insurance tax) on the first $97,500
of self-employment income. A 2.9% Medicare tax is imposed on all net
self-employment income. Fifty percent of the self-employment tax paid
is deductible. |
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