Prosecutor of the Federation
Your federal tax returns is deducted according to the allowances you claimed on Form W-4 to present to the employer when you started working and the amount of money you make each payment PERIOD. Estn federal taxes withheld are sent to the IRS and recorded with his Social Security number.
State and local taxes
Employers base state tax deductions on state tax rates and exemptions emphasis; oyees entered on Form W-4. Employers with businesses in states that have a requirement to use local tax gross pay to calculate the local tax according to local guidelines.
Social Security taxes
The Social Security tax is taken from wage bill of every paycheck and deposited into the Social Security Administration. This money is not refundable unless you have paid more in a given year, which is unlikely unless the two papers. The gross amount of income subject to Social Security taxes for 2009 is 106,800 dollars. The retencin of your gross income is 6.2% and the employer matches this amount with money from the company.
The Medicare tax is deducted from your paycheck and deposited wage bill along with your Social Security tax. This money goes into a fund for Medicare payments. The retencin of your gross income is 1.45% and the employer matches the amount the company money. Medicare payments are deposited with the Social Security tax. There is no limit on Medicare payments.
Pre-tax deductions, such as a 401K are subtracted from gross income before federal and state taxes, but the deduction does not reduce the amount of Social Security and Medicare you pay.