The Social Security (SS) “wage base” will increase to $147,000 for 2022, up from $142,800 for 2021. Wages and self-employment income above this threshold aren’t subject to SS tax. The Federal Insurance Contributions Act (FICA) imposes SS tax and a Medicare tax on employees, employers and the self-employed. There’s no threshold for Medicare tax; all wages and self-employment income are subject to the tax. The FICA tax rate for employees and employers is 7.65%: 6.2% for SS and 1.45% for Medicare. The self-employed pay both the employee and employer portions. Wages or self-employment income above certain amounts are subject to an additional 0.9% Medicare tax.

What Steps To Take When You Discover Tax Filing Errors
Filing taxes accurately is crucial for maintaining your financial well-being. Mistakes on your tax return can lead to headaches, unnecessary penalties, or even audits that nobody wants to face. Life throws a curveball now and then, and dealing with tax errors is one...
0 Comments