Gov. Romney paid his full self-employment tax (FICA and Medicare) on his material business income.
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As with the FICA or payroll taxes in the US the rates and qualifying incomes differ.
The majority of American employees felt the return of the 2% FICA payroll taxes in January.
Then, more distortionary again, are taxes on incomes (this includes both income taxes and FICA).
The addition of FICA certainly makes total taxation of incomes more regressive than just the income tax is.
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Commentators mentioned that the IRS attacks S corp owners for not taking adequate salaries thereby shorting FICA and Medicare.
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These shortfalls were covered by increased FICA taxes (Greenspan Commission) on those at the bottom end of the income ladder.
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Fica boss Tim May told BBC Radio 5 live his group had "significant concerns" about the response to Saturday's events.
It is an incentive to work, or at least to report work and pay the FICA and Social Security taxes.
They did not even bring him to the FICA max even though there was apparently no real independent business there.
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Take someone in the 25% federal income tax bracket, facing a 15.3% (FICA) payroll tax and a 9.3% California income tax.
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At the time the FICA tax was a paltry 1% of Income.
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More income would be subject to the Social Security payroll (FICA) tax.
Employers have been grappling with the issue of whether FICA tax is due on severance payments to laid-off employees for a long time.
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This UK situation is subtly different from the US one, because national insurance (our equivalent of the various FICA stuff) is not entirely capped.
To this day, paycheck stubs identify Social Security taxes withheld from a worker's wages as FICA -- for Federal Insurance Contributions Act -- deductions.
The treatment of SUB payments for FICA purposes, however, has long been clouded, primarily due to the questions raised by the italicized language above.
This looks like a very good idea: abolishing national insurance (payroll taxes like FICA in the US) but perhaps not for the reason given.
If President Obama still wants Keynesian-style stimulus for ideological reasons, he should do it the right way--cut the FICA tax in half for 18 months.
May said Fica would conduct its own review of the security arrangements and he expects that process to be completed in a couple of weeks.
Subsequently, the company realized that FICA taxes apply to wages but there is no provision in the Internal Revenue Code that treats severance pay as wages.
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If this ruling stands, the IRS can expect a tidal wave of refund applications from employers and terminated employees regarding FICA taxes paid on severance pay.
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As shown in the chart below, effective Federal tax rates for low earners have dropped to zero over the last decade, even after including FICA taxes.
Payroll taxes (FICA) and work expenses (primarily childcare) both add to the economic hardship of low-income people, each adding 4-5 million people to the poverty rolls.
Having a very small business, with only a handful of employees (as defined by the Tax Code) can completely destroy cash flow from the FICA matching alone.
Mainstay treated the leased employees as its own for tax purposes, issuing W-2 forms, withholding and remitting income taxes, and paying the employer portion of FICA taxes.
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Democrats could sell a flat tax to their liberal base by lifting the ceiling on FICA taxes so that a 20% tax really would mean a 20% tax.
Before the temporary payroll tax cut last year, employees and employers paid 7.6% in FICA payroll, of which 6.2% went to social security and 1.5% went to Medicare.
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You put in a call to the HR Department, and they tell you that they were required to take out FICA taxes, because the severance payments are wages.
Absent an appeal to and reversal by the U.S. Supreme Court, the IRS must refund the FICA tax paid by the company and the employees on the severance pay.
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