Income you have in excess of $200,000 (single filers), $250,000 (joint filers) or $125,000 (married people filing separately) is subject to an additional 0.9% Medicare surtax, which your employer won't match. Employers then match those percentages so the total contributions are doubled. Workers have to pay 1.45% of their wages for the Medicare tax and 6.2% for the Social Security tax. The new W-4 removes the option to claim allowances, as it instead focuses on a five-step process that lets filers enter personal information, claim dependents or indicate any additional income or jobs.įICA taxes are made up of Medicare and Social Security. Over the last few years, there have been slight changes to withholding calculations for the federal income tax, as well as Form W-4. You should also fill out a new W-4 anytime you experience life changes, such as a marriage, divorce or the birth of a child. That's why your employer will require you to fill out a W-4 whenever you start a new job. You have to enter information about your filing status and dependents on your Form W-4, which allows your employer to know how much to withhold from your paycheck. How much you pay in federal income taxes depends on a few different factors, like your marital status, salary and if you want any additional withholdings. However, federal income and FICA (Federal Insurance Contribution Act) taxes are unavoidable no matter where you work. Washington state does not impose a state income tax. Number of cities that have local income taxes: 0.Median household income: $ 80,408 (U.S.
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