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Q. What
is the current FICA tax rate and wage limit?
A. The current FICA rate is 7.65% (6.2% for social security tax and 1.45% for medicare tax). The wage limit for 2008 for social security is $102,000.00 (maximum withholding is $6,324.00). There is no wage limit for medicare.
Q. What is the
current unemployment insurance annual wage base?
A. The current federal unemployment insurance annual wage base is $7,000.00. The state unemployment insurance wage base varies from state to state. For example the wage base for 2008 in New York is $8,500.00, in New Jersey it is $27,700.00, and in Connecticut it is $15,000.00.
Q. What forms
need to be filled out when hiring a new employee?
A. Each new employee must complete the Office of Citizenship & Immigration Services’ Form I9 to verify that they are legally eligible to work in the United States. In addition, each new employee must fill out federal Form W4 to determine his or her proper rate of withholding.
Q. What is the minimum wage as of July 24, 2007?
A. The federal minimum wage is $5.85 per hour. The federal government has made plans to increase the minimum wage over the next two years. On July, 24, 2008 the federal minimum wage will increase to $6.55 per hour. On July 24, 2009 the federal minimum wage will increase to $7.25 per hour. State minimum wages vary from state to state. For example the minimum wage in New York is $7.15 and in Connecticut it is $7.65. The federal government and many states allow a lower minimum wage for employees who receive tips. All employers must comply with both federal and state laws.
Q. How many weeks
are in a year?
A. There are 52.14 weeks in a year (365 days divided by 7 days in a week). Approximately every 7 years, employees who are paid weekly will receive 53 paychecks. |
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