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Tax Question?
What I pay for my contributions to my benefits and 401K are
excluded from my federal taxagle wage. Is my Social Security Tax and MedicareTax calcualted with my gross pay or my federal taxable wage?
4 Answers
- Spartacus!Lv 71 decade agoFavorite Answer
Social Security and Medicare are calculated on your gross pay. This is reflected in your annual social security statement you receive from the SSA.
- 1 decade ago
Some items that are considered wages are not subject to social security taxes; a couple of examples are Qualified pretax health insurance, some cafeteria plans (child care, health insurance deductibles) and Employee Stock Purchase plans. Other things such as 401K are subject to social security.
See pub 15, 15A, 15B and 525 for more details
- jwishzLv 71 decade ago
Your contribution to a 401-K are pretax. There are no deductions for income tax or social security/medicare
Source(s): retired cpa - GemLv 71 decade ago
Social security is always figured on your gross (before non-taxed reductions).
There is no break for SS/Med tax, unless you hit the maximum which keeps going up.
