|
|
|
Frank DiPaola,
EA
|
|
Tax Accountant |
|
|
Tax Form Processing LLC
|
|
FOR THE TAXPAYERSM |
|
www.TaxFormProcessing.com |
|
2400 N Forsyth Road Suite 101 |
|
Orlando, FL 32807-6445 |
|
What's NEW for Tax Year 2007? |
|
|
|
Social Security
Tax Wage Limits & Rates & Medicare Rates for Tax Year 2007 |
| |
|
|
The Federal
Insurance Contributions Act (FICA) consists of two separate parts. One is
the Social Security and the other is Medicare. Different rates apply
to each of these for both employees and self-employed persons.
|
Year 2007 - Social Security Rates |
|
If you are: |
Your Rate is: |
Rate Applies to: |
|
Employee |
6.2% |
FIRST $97,500 of Wages |
|
Self-Employed |
|
Independent
Contractor |
|
12.4% |
FIRST $97,500 of net profit from trade
or business |
|
Year 2007 - Medicare
Rates |
|
If you are: |
Your RATE is: |
Rate APPLIES to: |
|
Employee |
1.45% |
ALL Wages |
|
Self-Employed |
|
Independent
Contractor |
|
2.9% |
ALL net profit from trade or business |
For other 2007 Social Security and Medicare
changes such as quarter of coverage, retirement earnings test exempt
amounts, SSI payments, and COLA amounts,
click here.
|
|
|
Click here to return to "What's NEW for Tax Year 2007?" |
|
|
|
