Federal Tax Witholding Rates
Federal withholding information
- Personal exemption - $3,650 for 2010
Social Security (Old age, survivors, and disability insurance):
-6.2% on $106,800 for 2009 (employee & employer), remains unchanged for 2010
-12.4% on $106,800 for 2009 (self employed), remains unchanged for 2010
Medicare basic hospital insurance
-1.45% on all wages (employee & employer)
-2.9% on net earnings (self employed)
FUTA wage base and rates
-6.2% less credit for contributions to state funds up to 5.4% on $7,000 (employer)
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.
401(k) limit
- $16,500 for 2010
Minimum Wage
- $7.25 per hour effective 7/24/09. .