Table H: Federal Taxes, Income Ceilings, and Federal/State Minimum Wages (FSM)

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1.     Self-employed individuals pay a FICA withholding amount of 15.3% (2.9% for Medicare and 12.4% for Social Security tax), but they deduct one-half of their FICA tax paid on their federal income taxes. This reduces their FICA contribution to 7.65%.

2.     The income ceiling subject to the full FICA withholding rate is $168,600.

3.     There is no upper limit to the amount of gross earned income from which Medicare may be withheld.

References: RSA 167:4,I(a); RSA 279:21; 26 USC 3101; 26 USC 3111; 29 USC 206