Federal Income Tax (FIT) - Withholding formula
Single Individuals & Head of Household- 2007
Income Pay + % of Amount >
<$2,650 $0.00 0% $0.00
<$10,120 $0.00 10% $2650
<$33,520 $747.00 15% $10,120
<$77,075 $4,257.00 25% $33,520
<$162,800 $15,145.75 28% $77,075
>$351,650 $39,148.75 33% $162,800
>$351,650 $101,469.25 35% $351,650
Married Individuals Filing Jointly and Surviving Spouses - 2007
Income Pay + % of Amount >
<$8,000 $0.00 0% $0.00
<$23,350 $0.00 10% $8,000
< $70,700 $1,535.00 15% $23,350
< $133,800 $8,637.50 25% $70,700
< $203,150 $24,412.50 28% $133,800
< $357,000 $43,830.50 33% $203,150
> $357,000 $94,601.00 35% $357,000
Federal Insurance Contributions Act (FICA) - Medicare
Employee 1.45% on all wages
Employer 1.45% on all wages
Self employed 2.9% on net earnings
Federal Insurance Contributions Act (FICA) - Old Age, Survivors, and
Disability Insurance (OASDI)
Employee 6.2% on first $97,500 of wages
Employer 6.2% on first $97,500 of wages
Self employed 12.4% on first $97,500 of net earnings
Federal Unemployment Tax (FUTA)
Employers who either employ one or more individuals in each of twenty
different weeks in a calendar year or pay wages of $1,500 or more during any
calendar quarter in the current or preceding calendar year pay 6.2%. Employers
are entitled to a credit against their FUTA liability for contributions to state
funds. The credit is limited to 90% of a deemed 6% federal tax rate (5.4%). The
net effective FUTA rate for most employers is therefore 0.8% on the first $7,000
of wages paid to each employee in a calendar year.