1. DETERMINING PAYROLL TAX WITHHOLDING

2. PAYROLL TAXES  Based on employee’s total earnings  Employee Income Tax  FICA Taxes  Social Security Tax  Medicare Tax

3. SOCIAL SECURITY AND MEDICARE TAX  Social security  Federal tax paid for old-age survivors and disability insurance.  Medicare tax  Federal tax paid for hospital insurance Both of these taxes are based on percentages. (total earnings * tax percentage) These taxes are paid by both the employer and the employee.

4. WITHHOLDING ALLOWANCE  A deduction from total earnings for each person legally supported by a tax payer including the employee.

5. W-4 EMPLOYEE’S WITHHOLDING ALLOWANCE CERTIFICATE Name Marital status SSN Withholding Allowances Date

6. EMPLOYEE’S INCOME TAX WITHHOLDING – MARRIED PERSONS LESSON 12-2 6 1 23 1.Select the appropriate table. 2.Locate the employee’s total earnings. 3.Intersection of wages and number of allowances column.