Understanding FICA and the FICA Tax Rate

Businesses of all sizes and every field should have a basic understanding of FICA. This tax, composed of two separate contributions, is deducted from employee payroll and paid to the relevant federal agencies. Without FICA, essential public services would fail to perform their functions; over time, they would cease to exist. It is up to […]

Federal Tax Software for Small Businesses

Let’s start with the basics: The W-2/1099 Forms Filer is the base program for all of the federal tax software available from Advanced Micro Solutions. This platform enables our clients to fill out their forms on a screen that resembles the form itself. Between the default/define command and Common Payee File, you won’t have to […]

FICA and how to calculate

FICA is composed of two taxes: Social Security and Medicare. Social Security Social Security is calculated by multiplying an employee’s taxable wages by 6.2%. For example, if an employee’s taxable wages are $600 this week: $600.00 x 6.2% = $37.20 (this amount would be deducted from the pay check) There is a wage base limit […]

FICA Withholding Rates for 2019

FICA withholding rates have not changed from 2013; the only difference is that the maximum wage subject to Social Security tax has increased to $132,900 for 2019. The rates for 2019: Employee/Employer rate for Social Security ($132,900 max subject wages): 6.2% Employee/Employer rate for Medicare (no max subject wages): 1.45% Employee rate for Medicare Surcharge […]