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.

Circular E

Social Security Tax is 6.2% of the gross wages for 2018.
If gross wages for 2018 exceed $128,400, no further social security tax is deducted.

Medicare Tax is 1.45% of the gross wages for 2018
Wages are uncapped for medicare tax.

Additional Medicare Tax of 0.9% for a total of 2.35% on high earners in 2018.
On wages over $200,000 for Singles and $250,000 for Married Filing Jointly.

cpa clearwater st petersburg pinellas park fl