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.

Trust Fund Inheritance Tax Questions You Need Answered Now
Navigating the world of trust funds can often feel like decoding a secret language. For many, the topic of trust fund inheritance taxes is wrapped in layers of confusion and anxiety. If you're expecting to inherit or manage a trust fund, you might wonder what pitfalls...
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