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Employers are required to withhold state (not in florida), federal, social security and medicare taxes from employees paychecks. The paycheck amount should be…
Gross wages
= net paycheck amount
The amount of federal withholding is calculated by taking the number of exemptions the employee claims on his W-4 and finding the corresponding deduction on the withholding tables.
To print a W-4 for your employee for complete, click below.
Form W-4 for 2007
To print the IRS tables to calculate federal tax withholding click below.
Circular E
Social security tax is 6.2% of the gross wages. If gross wages for 2008 exceed $102,000, no further social security tax is deducted.
Medicare tax is 1.45% of the gross wages. There is no upper limit on wages for medicare, all gross wages are subject to medicare tax.
