Social Security Withholding Tax Calculator
The Payroll tax or Self employment tax is the amount of money paid into the Social Security and Medicare system. You will pay a percentage of your salary. If you’re self employed you can make arrangements to pay this on a quarterly schedule, otherwise you will be looking at quite a large bill at the end of the year.
Employer or Self Employed
If you are the employer and you want to calculate the amount of Social Security withholding from your employees pay, you can take advantage of
the payroll withholding tax calculator provided by QuickBooks Online. Self employed taxpayers can also use the withholding calculator for their employees.
Federal Insurance Contributions Act
As an employer you will pay half of the tax due most likely as withholding from your employee’s paycheck.
The employer will be able to claim the deduction on his or her tax return. If you are self employed you will pay the whole total tax due yourself. You will then be able to claim half of it as an adjustment on your tax return. Don’t forget to make arrangements to pay quarterly.
Withholding Tax Calculator
All of us like to know where we stand concerning our finances. Do you really want a big surprise at the end of the year? For example, a multi thousand dollar bill due to Uncle Sam? This actually did happen to a friend of mine who started his own business and didn’t realize he needed to pay the FICA taxes.
You need to calculate your Social Security withholding to make sure you are paying enough as you progress through the year. Try using the w-4 tax estimator to see how much you should have withheld from your paycheck!
Don’t Leave Your Finances to Chance
Knowledge is power. This saying is common to most of us and it certainly is true when it comes to your finances. Don’t just sit there wondering how it will all turn out. Do something about it now.
Visit TurboTax Online today to calculate your income tax return in advance. You will be pleasantly surprised with the power of the online tax estimator.
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