![]() ![]() If you’re self-employed, you are responsible for paying the full FICA taxes yourself. Together, Social Security and Medicare taxes make up FICA (Federal Insurance Contributions Act) taxes. Any income you have in excess of $200,000 is subject to an additional Medicare surtax of 0.9% (your employer doesn’t match this surtax). ![]() Medicare taxes follow a similar process, with 1.45% being collected from both you and your employer (for a total of 2.9%). Your employer is responsible for matching this amount for a total of 12.4% that the government receives to fund the program. Instead of using allowances, the new form applies a five-step process that requires filers to prove and enter annual dollar amounts for any additional income or jobs, along with some other personal information.Īs for your FICA taxes, 6.2% of your income goes to Social Security taxes. The IRS made notable updates to the W-4 in recent years. The amount of federal income taxes withheld will depend on your income level and the withholding information that you put on your Form W-4. Depending on where in the state you live, you will likely also pay local income taxes. For starters, all Pennsylvania employers will withhold federal and state income taxes from your paychecks, as well as FICA taxes. ![]() Without the help of a paycheck calculator, it’s tricky to figure out what your take-home pay will be after taxes and other monies are withheld. Number of municipalities and school districts that have local income taxes: 2,978.Median household income: $ 64,910 (U.S. ![]()
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