Federal Income Tax (FIT) - Withholding formula

Single Individuals & Head of Household- 2007

Income Pay + % of Amount >

<$2,650       $0.00              0%         $0.00

<$10,120 $0.00 10% $2650

<$33,520 $747.00 15% $10,120

<$77,075 $4,257.00 25% $33,520

<$162,800 $15,145.75 28% $77,075

>$351,650 $39,148.75 33% $162,800

>$351,650 $101,469.25 35% $351,650

Married Individuals Filing Jointly and Surviving Spouses - 2007

Income Pay + % of Amount >

<$8,000 $0.00 0% $0.00

<$23,350 $0.00 10% $8,000

< $70,700 $1,535.00 15% $23,350

< $133,800 $8,637.50 25% $70,700

< $203,150 $24,412.50 28% $133,800

< $357,000 $43,830.50 33% $203,150

> $357,000 $94,601.00 35% $357,000

Federal Insurance Contributions Act (FICA) - Medicare

Employee 1.45% on all wages

Employer 1.45% on all wages

Self employed 2.9% on net earnings

Federal Insurance Contributions Act (FICA) - Old Age, Survivors, and Disability Insurance (OASDI)

Employee 6.2% on first $97,500 of wages

Employer 6.2% on first $97,500 of wages

Self employed 12.4% on first $97,500 of net earnings

Federal Unemployment Tax (FUTA)

Employers who either employ one or more individuals in each of twenty different weeks in a calendar year or pay wages of $1,500 or more during any calendar quarter in the current or preceding calendar year pay 6.2%. Employers are entitled to a credit against their FUTA liability for contributions to state funds. The credit is limited to 90% of a deemed 6% federal tax rate (5.4%). The net effective FUTA rate for most employers is therefore 0.8% on the first $7,000 of wages paid to each employee in a calendar year.