Federal Insurance Contribution Act Flashcards
0
Q
Self employed persons
A
Self employement tax
13.3%
Net profit exceed $ 400 per year
1
Q
Federal insurance contribution act
A
- 2% of their gross wages of Rs 113700
- 45% Medicare contribution
Gross wages include all earned income such as salary , bonuses, and commissions .
Gift interest dividends are not wages
2
Q
Unemployment compensation
Employer
Eligible
A
Quaterly payrolls of at least $1500 or
Who employs at least one person for 20 weeks in a year
3
Q
Unemployment compensation
A
Self employed do not participate
4
Q
Federal unemployment tax rate
A
6 % on the first 7000 per year of compensation for each Emplyee
5
Q
Emplyees can get credit
A
State unemployment taxes of up to 5.4 % of the first $ 7000
