The following is a summary of various employment taxes and related resources from the IRS:
You generally must withhold federal income tax from your employees' wages. You withhold part of Social Security and Medicare taxes from your employees' wages and pay the employer's share of these taxes. To figure out how much to withhold from each wage payment, use the employee's Form W-4 and the methods described in Publication 15, Employer's Tax Guide and Publication 15-A, Employer's Supplemental Tax Guide (PDF).
For 2011, FICA taxes are collected at a rate of 5.65% (for employees) on gross earnings, broken down to:
Social Security’s Old-Age, Survivors and Disability Insurance (OASDI) is a payroll tax that pays for cash benefits to entitled beneficiaries. Hospital Insurance (HI) tax pays for hospital benefits for people covered by Medicare.
For Medicare's Hospital Insurance (HI) program, the taxable maximum was the same as that for the OASDI program for 1966-1990. Separate HI taxable maximums of $125,000, $130,200, and $135,000 were applicable in 1991-93, respectively.
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