2010 FICA Limits
Social Security (OASDI) Wage Base $106,800, Percentage: 6.2%
Medicare Wage Base No Limit, Percentage 1.45%
For self-employed individuals, the 2010 social security wage base is $106,800, with the social security tax rate remaining at 12.4%. There is no Medicare wage limit, and the Medicare tax rate remains at 2.9%. The tax applies to the net earnings from self-employment.
Federal Tax Deposit Rules
In late 2009, the Internal Revenue Service sent notices to all employers notifying them of their deposit frequency for 2010. It
remains the employer’s responsibility to deposit federal taxes at the correct frequency even if a notice was not sent by the IRS, or if the
notice sent was incorrect.
1. An employer is a monthly depositor for 2010 if the aggregate amount of employment taxes reported for the period July 1, 2008 to June 30, 2009 is $50,000 or less, unless a daily deposit is required as explained in Rule 3 below. Deposits are due on the 15th of the following month. If the 15th falls on a holiday or weekend, the due date is extended to the next banking day.
Note: New businesses deposit using the monthly deposit rule, unless a daily deposit is required under Rule 3.
2. An employer is a semi-weekly depositor for 2010 if the aggregate amount of employment taxes reported for the period July 1, 2008
to June 30, 2009 exceeds $50,000. Deposits for payments made on Wednesday, Thursday, and/or Friday are due on or before the
following Wednesday. Deposits for payments made on Saturday, Sunday, Monday, and/or Tuesday are due on or before the following
Friday. In the event of a holiday, employers have three banking days from the end of the semi-weekly period to deposit.
Note: Semi-weekly employers with an accumulated unpaid liability of $100,000 or more during the deposit period must deposit within
one banking day of the payroll check date, as stated in Rule 3. If the semi-weekly period includes the end of the first month of the
quarter and the beginning of the second month, or the end of the second month and the beginning of the third month, only one deposit
is required. If an employer has payroll for two different reporting quarters within the same semi-weekly period, two deposits must be made.
3. Employers with an accumulated unpaid liability of $100,000 or more during the deposit period must deposit within one banking day of the payroll check date. When a monthly depositor is subject to this rule, that employer immediately becomes a semi-weekly depositor for the rest of 2010 and for 2011. Also, any monthly depositor who had a deposit of $100,000 or more between January 1, 2009 and December 31, 2009 is considered a semi-weekly depositor for the rest of 2009 and for 2010.
4. Form 941 employers with accumulated liability of less than $2,500 for the entire quarter may deposit or remit the amount with a timely filed Form 941, Employer’s Quarterly Federal Tax Return.
5. Form 944 employers with accumulated liability of less than $2,500 for the entire year may deposit or remit the amount with a timely filed Form 944, Employer’s Annual Federal Tax Return.
Our New Brochure
August 2, 2010
Hot off the presses, Netpay rolls out its new list of products and services for 2010:
Netpay Payroll's Blog 