How to Figure FICA Tax Withholding

Instructions

• 1

  Figuring the employee’s gross income
  
  First you need to do is to figure out the employee’s gross income for a specific period of time. Though you add all gross salary but do it carefully so that you do not add the deductions as well. This will create confusion in the total annual salary and the average. You should get information on how you can calculate the entire salary for an individual and calculating the FICA as well. There are lots of online forums on the internet which will guide you in a simple yet effective manner. You can also get information from different corporate lawyers as well. Experienced lawyers will always give you different ways to calculate the FICA withholding.
• 2

  Pretax deduction
  
  Before calculating FICA withholding you should know whether or not the employee has pretax deductions. Usually you should care as these small issues sometimes give you big headaches which certainly create more problems calculating FICA withholding. You should make sure that no employee gets pretax deductions. It is also important that you consult a corporate lawyer, you should give him all the details which he needs to take your case.
• 3

  Calculate taxable wages
  
  You cannot calculate FICA without calculating taxable wages from the entire income of an individual. It is also important as to how well you calculate taxable wages. Sometimes if you missed something, that will create difficulty in the whole process.
• 4

  Compute taxable wages
  
  Now compute taxable wages as it will tell you what else you need to do for calculating FICA withholding.