FICA

What is FICA?
FICA is the abbreviation for the Federal Insurance Contributions Act Taxes which, along with Medicare taxes, are withheld from employee paychecks and matched by employers, including UW. FICA is the means by which social security is funded. If taxed, 6.2% of your gross wages plus an equal amount paid by UW will be paid into social security and be utilized in determining your benefit upon retirement. For 2010, the first $106,800 of a person's wages is subject to the FICA tax.

What is Medicare Tax?
Medicare taxes are, like FICA matched by your employer with 1.45% of your wages withheld from your paycheck and an equal amount paid by the UW. There is no limitation upon the amount of wages subject to Medicare taxes. The Medicare taxes are the means by which the government funds Medicare.

If I paid in the maximum amount of FICA for the year while working for another employer, are my earnings from UW subject to additional FICA withholding?
Yes, each employer must withhold and pay FICA taxes on the wages paid yearly to each employee up to the maximum amount taxed for FICA purposes. However, there would be no additional withholding provide the student FICA exemption rules are met. Remember there is no maximum for the withholding of Medicare taxes.

If I worked more than one job during the year and exceeded the FICA withholding limits for both jobs, together, how do I claim a refund?
You can obtain a refund of excess FICA by claiming a refund on your Form 1040 for the year when you file your personal income tax return.

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