Tag: FICA

Self-Employment Tax Calculation: The Basics

Here’s a basic overview of the self-employment tax calculation for self-employed people. These are the steps for the calculation: Determine your net self-employment income. For most self-employed people, this will be the net profit from their Schedule C. Multiply by 92.35% (.9235). Multiply that result by 15.3%. This gives you the amount of self-employment tax […]

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IRS Guidance on FICA Refunds for Same-Sex Married Couples

The IRS has released a streamlined procedure for recovering FICA taxes withheld on the pay of same-sex married couples in cases where benefits (typically health insurance) were counted as taxable income to an employee. Background Under tax law, employer-provided health insurance is considered a tax-free benefit as long as the insurance covers the employee, the […]

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