2022 Standard Federal Tax Reporter (CCH) Joint Committee Summary of P.L. 111-312 (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010), Congress (United States)


Summary

  • Committee Report: Standard Federal Tax Reporter (2022), Joint Committee Summary of P.L. 111-312 (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010)

    .087 Self-employment tax rate reduced in 2011. -

    The FICA tax applies to employers based on the amount of covered wages paid to an employee during the year.  1Link to the text of the note  Generally, covered wages means all remuneration for employment, including the cash value of all remuneration paid in any medium other than cash.  2Link to the text of the note  Certain exceptions from covered wages are also provided. The tax imposed is composed of two parts: (1) the old age, survivors, and disability insurance (  "OASDI" ) tax equal to 6.2 percent of covered wages up to the taxable wage base ($106,800 in 2010); and (2) the Medicare hospital insurance (  "HI" ) tax amount equal to 1.45 percent of covered wages.

    In addition to the tax on employers, each employee is subject to FICA taxes equal to the amount of tax imposed on the employer (the ...