Question about my taxes...

SSN = Social Security
FICA = Federal Witholding
sorry about that, my head is spinning 1000 ways this morning

It may sound crazy but having the $50 per paycheck come out pre-tax acctually makes my paycheck a couple dollars more post-tax than if I didn't have the $50 taken out.

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.

I typed FICA while I was thinking about social security and I deal with social security numbers (SSN) all day long. I may have been typing faster than my brain could compute. The question remains what would the total deduction be after federal & state withholding, Medicare and social security?
$6800 is the taxable amount.
And yes, employer does match contributions.

Paid semi monthly (on the 15th and 30th), Louisiana

The employer wants to pay everyone in advance. The goal is to pay everyone on 12/15 for all of December and January. This will make January’s paycheck as taxable income for the 2010 tax year but only making the taxable amount for 2011 based on 11 months of income instead of 12. That is of course unless the employer decides to do the same thing again.

Put away your calculator.

If you are just looking for an estimate, you will net about 70 - 75% of the gross.

Simple enough?

So your employer is askikng you to increase your 2010 taxes so he can decrease his. Based on your gross pay your taxes won't be increasing due to higher rates in 2011. They may increase due to loss of credits, but having less income won't have much effect on that. I wouldn't take the deal without some sort of bonus for the time value of the additional taxes you will be paying in 2010 versus 3011.