Medicare: Like Social Security taxes, both the employer and employee pay Medicare taxes — 1.45 percent each of the employee’s wages, for a total of 2.9 percent. Federal Unemployment Tax Act (FUTA): This is an employer-only tax; FUTA is not withheld from employee wages like Social Security...
For active workers, ages 51–64, we examine trends in effective hourly wages, having job-based health insurance in own name, having a promise of retiree health benefits, and whether employment is part- vs. full-time. We evaluate how the status of U.S. workers nearing retirement changed ...
It is possible to combine state and federal tax credits. Employers may be able to save the full amount for both state and federal tax credits. However, it depends on how the credit is calculated. Wages, for example, can’t be double dipped. It also depends on the state credit itself an...
A self-employed individual must also pay the full 2.9% of Medicare tax. Self-employment wages are also subject to additional Medicare tax (0.9%). If the additional Medicare tax applies, the total tax rate is 3.8% (2.9% + 0.9%). There is no maximum amount of Medicare tax an individual...
If you have not received a cost-of-living adjustment, it may be time to discuss a general raise that considers the increased living costs in your area. Did You Know? In addition to limiting your earnings, stagnant wages affect small businesses. Some of these negative impacts, such as ...
full-time weekly wages if not full-time full-year wages (Acemoglu and Autor, 2011, 1049)—“earnings” in our definition. Though this seems largely a matter of data convenience, it may have important implications for comparisons. First, it ignores the incidence of part-time employment which ...
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If the numbers above are based on weekly wages, simply multiply the numbers by seven. That is, employees with a weekly salary of less than $1,960 do not need to contribute, and the boss has to contribute 5%; if employees with a weekly salary of above $7,000, both parties will contri...