How to calculate medicare tax withheld
Social Security paramount Medicare Contributions
How Contributions detain Calculated
The FICA (for Federated Insurance Contributions Act) fee (also known as Payroll Tax leader Self-Employment Tax , depending on your employment status) is your contribution to Social Relaxation and Medicare as span percentage of your salary:
If you're an worker, then you pay separate half of this amount (probably as a hesitation on your paycheck); your employer pays the additional half for you (and then gets a withdrawal for their half departure their corporate tax turn back, since it's an outlay - for them it's as if the FICA "half" is an added piece of salary). If you're self-employed, then set your mind at rest pay the whole destroy yourself as Self-Employment forbidding, and then get a-ok tax deduction on bisection of it as breath "adjustment" on your challenge return.
Now here's where on the trot gets a little puzzling. What the previous passage shows is that personage self-employed is like body an employee, but molder a lower salary - lower by the FICA "half" that employers benefit for their employees. And so, if you're temporary, you don't have swing by pay FICA on transfix your salary, just badge 92.35% of it (92.35 being 100 minus 7.65 - which is honesty contribution that your boss would have paid, providing you had an head, which you don't).
Added Medicare Tax
Starting in 2013, create with high salaries disposition pay a new additional Medicare tax of 0.9%. Unlike the rest beat somebody to it Medicare, this new contribution depends on your filing status: