In my current paycheck I noticed that, the amount of medicare and SSN tax that got deducted from my taxable wage is little higher. I know that the SSN tax percentage is 6.2% of the taxable income and medicare is 1.45% of the taxable income. I have also heard that these are not refundable while filing taxes and that only federal and state taxes are refundable. So do I need to inform my employer on this high percentage of Medicare and SSN tax withheld from my wages? Kindly advise.

Remember that the wages that SSN and Medicare are calculated on is a different amount than "federal wages." Specifically, if you contribute to a 401(k) plan that money is not included in your federal wages for calculating income tax, but is included in your "FICA pay" for calculating SS and Medicare taxes. Also if your employer provides group term life insurance it's possible that a portion of the value of that insurance is subject to SS and medicare tax. If you don't think the numbers are right I suggest you ask your payroll department for an explanation.

Not sure what you mean by federal and state income taxes being "refundable" - what do you mean?

Remember that the wages that SSN and Medicare are calculated on is a different amount than "federal wages." Specifically, if you contribute to a 401(k) plan that money is not included in your federal wages for calculating income tax, but is included in your "FICA pay" for calculating SS and Medicare taxes. Also if your employer provides group term life insurance it's possible that a portion of the value of that insurance is subject to SS and medicare tax. If you don't think the numbers are right I suggest you ask your payroll department for an explanation.

Not sure what you mean by federal and state income taxes being "refundable" - what do you mean?


Thanks a lot for your reply. You are right, I checked and my 401 K plan contribution amount is also taken into consideration which calculating FICA taxes. This was the first time that I started contributing to 401 K plan. BTW, what I meant by "state and federal taxes' as refundable was nothing but getting the tax refund with filing the taxes. I am afraid I didn't use the word correctly ;-)