Federal Tax Witholding Rates

Federal withholding information
- Personal exemption - $3,400 for 2007, $3,500 for 2008
- Withholding formula

Social Security (Old age, survivors, and disability insurance):
-6.2% on $97,500 for 2007 (employee & employer), $102,000 for 2008
-12.4% on $97,500 for 2007 (self employed), $102,000 for 2008

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)

401(k) limit
- $15,500 for 2007 and 2008

Minimum Wage
- $5.85 per hour effective 7/24/07. Effective 7/24/08, rate goes to $6.55.
Effective 7/24/09, rate goes to $7.25.