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Tax Types

04 Apr

Taxes for Business Types

All the taxes paid by each business type – sole proprietorship, limited liability company, partnership, or corporation. Income taxes (federal and state), self-employment taxes, sales and use taxes, and payroll taxes are included.

 

 

Social Security Tax – Annual Maximum Social Security Tax

The Social Security tax is a federal tax imposed on employers, employees and self-employed individuals. It is used to pay the cost of benefits for elderly recipients, survivors of recipients, and disabled individuals (OASDI Insurance). Social Security tax is one of the payroll taxes paid by employees, employers, and self-employed individuals each year.

The Social Security tax rate is 12.4 percent; 6.2 percent is withheld from each of the employer and employee, while the full 12.4 percent is paid by self-employed individuals.

Social Security taxes are withheld up to a maximum amount, which changes each year. Here are the maximum wages subject to Social Security for the past few years:

 

  • Thus, the maximum OASDI tax payable for 2009,2010, and 2011 is $13,432. The term “Social Security tax” or “OASDI” is often confused with “FICA taxes,” which include both Social Security and Medicare taxes. The Medicare tax rate is 1.45 percent for both employers and employees, with the self-employed Medicare rate at 3.3 percent.

 

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Posted by on April 4, 2011 in Tax Relief

 

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