Payroll Tax Rates
Payroll taxes are made up of several individual types of taxes. You’ll notice on your pay stub that your taxes that are taken out consist of federal taxes, state taxes, Social Security tax and Medicare tax. The following payroll tax rates are based on your base pay.
IRS Mileage Rate Standard Business Tax Deduction
Payroll Tax Rates:
Federal Tax Rates:
•The federal tax rates range from 15% to 35% of your wage depending upon your tax filing status; for example, the wage limitation and rate will vary depending on whether you claim single-head of house hold or married filing jointly. The amount taxed also depends on your pay schedule (bi-weekly, monthly, etc…).
•The following is an example of the tax you would pay if you were filing; single head of household with an income for a bi-weekly pay period of $1500.00. Your income of $1500.00 falls into the tax bracket range of $1387.00 to $2604.00. You would be assessed a flat tax rate of $164.70 plus 25% of the amount over $1387.00. So the total tax due for $1500.00 is $164.70 + $28.25 (25% of $113.00 the difference between $1500 and $1387) = $192.95.
State Tax Rates:
•The tax rate varies from state to state.
Social Security Tax Rates:
•Wages up to $106,800 will be taxed 6.2% for the employer and the employee.
•Wages up to $106,800 will be taxed 12.4% for someone who is self-employed.
There are free, online calculators that will help you determine your payroll tax rates. TurboTax has a free calculator that requires minimal information and the results you receive are extremely helpful when estimating what your tax withholding amounts will be. Altering the amount of payroll tax taken from each check can determine whether or not you will receive a refund at the end of the year or break even with the amount of tax owed.
TurboTax also has tax professionals available to answer your questions 24 hours, a day 7 days a week. They have the most up-to-date tax information available to guarantee the biggest refund possible.
Additional Child Tax Credit Amount
To estimate your payroll tax rates visit TurboTax Online today and you’ll find answers to all your tax-related questions.