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miclus · Sep 24, 2010, 01:34 PM

Hi. Here is a portion of my paycheck: http://duke3d.org/fica.png

I thought FICA was 6.2%, but it seems higher in all my checks. Do you know how they might have calculated the numbers on this check?

JudyKayTee · Sep 24, 2010, 01:37 PM

I didn't look but your percentage by law is 7.65%.

What percentage did they take?

miclus · Sep 24, 2010, 01:41 PM

Well, they told me these numbers:

Medicare is 1.45 % of gross and the alternative tax (Bencor) is 7.5 % but Bencor is deducted before the withholding is calculated so there is a little tax savings. The total percent of Fica tax is 8.95%

But, there is already a section on there for Fed Med, so I'm thinking they just do the 7.5%. Judy, what do you think?

miclus · Sep 24, 2010, 01:43 PM

My gross is 1375.38. Taxable gross is 1272.23. FICA was 103.15. Fed Med was 19.94.

miclus · Sep 24, 2010, 01:48 PM

So, 7.5% works out, but I wonder why I would want 7.5% when you can get 6.2%.

JudyKayTee · Sep 24, 2010, 01:49 PM

Originally Posted by miclus

So, 7.5% works out, but I wonder why I would want 7.5% when you can get 6.2%.

What? What do you mean you can get 6.2%. Federal law is NOT 6.2%.

ebaines · Sep 24, 2010, 01:50 PM

I calculate that they've taken 1233.06/16307.12 = 7.56%. Since the actual rate is 6.2% for SS + 1.45% for Medicare = 7.65% total, I would have expected the amount taken out for FICA to be about $14 more year to date. Perhaps the difference may be due to employee contribution for medical or dental coverage?

miclus · Sep 24, 2010, 01:53 PM

Hi, guys. I found they are taking 7.5% of the gross, not taxable gross. I think that's why it says FICA alternative, but I don't recall ever signing up for it.

ebaines · Sep 24, 2010, 02:01 PM

The FICA tax is paid on your gross earning, minus a couple of deductions for things like medical or dental insurance, or a health savings account, and plus the cost of certain benefits such as group term life insurance above $50K. The "Federal Taxable" amount is different - it doesn't include any pre-tax contributions to meical/dental and also has deducted from it any retirement savings (401(k) plan). Consequently it's very common for the amount on which you are taxed for FICA to be higher than the amount on which you are taxed for federal income tax purposes.