re: Question about my taxes...

quote:

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SSN = Social Security
FICA = Federal Witholding

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"FICA" includes social security + medicare, also known as "payroll taxes" as distinguished from "income taxes."

Federal withholding = federal income taxes.

The breakdown of FICA is 6.2% for Social Security (Old-Age, Survivors, and Disability Insurance or OASDI) and 1.45% for Medicare, or a flat rate of 7.65% on compensation up to a limit of the first $106,800 of pay.

The income tax rates are as follows: (based on annual taxable earnings)
= 10% on the income between $0 and $16,750,

= 15% on the income between $16,750 and $68,000; plus $1,675,

= 25% on the income between $68,000 and $137,300; plus $9,362.50,

= 28% on the income between $137,300 and $209,250; plus $26,687.50,

= 33% on the income between $209,250 and $373,650; plus $46,833.50,

= 35% on the income over $373,650; plus $101,085.50.

The tricky thing you will have to look out for is your company's payroll software might look at the four pay periods as if it is for only ONE pay period and withhold income taxes based on that assumption. If it does, your income tax withholding will be greatly overstated, although your FICA withholding will be correct.

Ask your company how they plan on handling that issue.