wtf is this FICA crap

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J

Journer

Banned
Jun 30, 2005
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so i'm not self employed anymore and i have to start paying taxes again :'( Well, last week i got my first paystub. the normal crap was taken out...medicare, insurance that i dont even need, but then...i noticed a HUGE sum of money taken out. all it said was FICA (from what i remember) and it took about 50 bucks from a check that the gross was only about 340 bucks. wtf? thats a lot of money from one single paycheck. i would hate to see what you big earners have to pay. i wiki'd and found a little info, but i'm trying to find out why the hell it is so expensive...
 
J

Journer

Banned
Jun 30, 2005
4,355
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Originally posted by: Electric Amish
Welcome to the working class.
Click to expand...

ive been in the working class, just, i was self employed for a few years and didnt make enough money to have taxes taken out. i'm also a full-time student..

but back in high school when i was working i never had this much money taken out...this is crazy...
 
Ns1

Ns1

No Lifer
Jun 17, 2001
55,420
1,600
126
If you work for somebody, then you pay 7.6% and your employer pays 7.6%

the tax is social security + medicare

if you don't work for somebody, you pay your share + the employer share, AKA the "self employment tax"
 
J

Journer

Banned
Jun 30, 2005
4,355
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yah but 340 * .076 = 25.84 NOT 50 fucking bucks

however 340 * .152 = 51.68 is there any reason my employer would be making me pay both?
 
Ns1

Ns1

No Lifer
Jun 17, 2001
55,420
1,600
126
Originally posted by: Journer
yah but 340 * .076 = 25.84 NOT 50 fucking bucks

however 340 * .152 = 51.68 is there any reason my employer would be making me pay both?
Click to expand...

No. Post up some numbers (if you're willing) and we'll see.
 
J

Journer

Banned
Jun 30, 2005
4,355
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Originally posted by: NeuroSynapsis
Originally posted by: Journer
yah but 340 * .076 = 25.84 NOT 50 fucking bucks

however 340 * .152 = 51.68 is there any reason my employer would be making me pay both?
Click to expand...

No. Post up some numbers (if you're willing) and we'll see.
Click to expand...

ill do it tonight when i get back from class
 
D

daveshel

Diamond Member
Oct 10, 1999
5,453
2
81
That's Social Security. If you hadn't been paying that on your own (self-employment tax), you may still be liable for it.
 
XZeroII

XZeroII

Lifer
Jun 30, 2001
12,572
0
0
Originally posted by: daveshel
That's Social Security. If you hadn't been paying that on your own (self-employment tax), you may still be liable for it.
Click to expand...

Exactly. I'm not sure why you have not been paying it, but you should have been paying about 15% when you're self employed. The gov't doesn't forget, either.
 
Spikesoldier

Spikesoldier

Diamond Member
Oct 15, 2001
6,766
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0
Originally posted by: Journer
so i'm not self employed anymore and i have to start paying taxes again :'( Well, last week i got my first paystub. the normal crap was taken out...medicare, insurance that i dont even need, but then...i noticed a HUGE sum of money taken out. all it said was FICA (from what i remember) and it took about 50 bucks from a check that the gross was only about 340 bucks. wtf? thats a lot of money from one single paycheck. i would hate to see what you big earners have to pay. i wiki'd and found a little info, but i'm trying to find out why the hell it is so expensive...
Click to expand...

you mean you werent paying your taxes being self-employed?

ruh-roh.

i would suggest checking your books and settle your debt if you do in fact owe the IRS. end result: it is always less (and less of a headache) than if an audit is conducted. you also don't want any bad marks against the government, as if you are audited and they find out that you have been cheating them, your chances to get audited again in the future rise significantly.



summary of a conversation i had with a friend kind of in the same boat:

individuals with sole-proprietorships or partners that think that they are "smart" by cutting themselves $0 salaries for the year only get hit to nearly the same degree by the capital gains tax. there is no way around it unless you like being a criminal.
 
techs

techs

Lifer
Sep 26, 2000
28,559
4
0
insurance that i dont even need

Well, sorry. If you become disabled our Christian country won't let you live on the streets and/or spread disease.
 
S

sciencewhiz

Diamond Member
Jun 30, 2000
5,885
8
81
Are you a W-2 or 1099 employee? Sounds like 1099 based on the FICA witholding rate. Therefore, you aren't paying anymore then you were supposed to be paying when self-employed. If you were W-2, you'd be paying less then you were supposed to when self employed.
 
A

aplefka

Lifer
Feb 29, 2004
12,014
2
0
I hate FICA. I would lose so much money to it at my old job. Wish I still had my stubs around so I could share in your pain.
 
FoBoT

FoBoT

No Lifer
Apr 30, 2001
63,084
15
81
fobot.com
that is you paying for the baby boomers social security that you will not receive when you are old
get used to it

and if you didn't pay your own FICA while "self employed" , then you probably broke some tax laws. if they catch you , it'll be FPMITAP for you. say hi to Michael Bolton and Wesley Snipes and Richard Hatch
 
A

AlienCraft

Lifer
Nov 23, 2002
10,539
0
0
From Mr. MacManus...
"Welcome to the workin' week.
Oh I know it don't thrill you, I hope it don't kill you.
Welcome to the workin' week.
You gotta do it till you're through it so you better get to it."
 
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