Payroll Withholding
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 minus...
- Federal Withholding
- State Withholding (if any)
- Social Security Tax
- Medicare Tax
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.
To print IRS tables to calculate Federal Tax withholding, click below.
Social security tax is 4.2% of the gross wages for 2011 only.
If gross wages for 2011 exceed $106,800, 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.
