What is FICA on my paycheck?
FICA is the combined Social Security and Medicare payroll tax. Employees pay 6.2% Social Security on wages up to the wage base (~$168,600) and 1.45% Medicare on all wages. Employers match both. An extra 0.9% Medicare surtax applies to wages over $200,000.
What is the difference between withholding and my final tax?
Withholding is your employer's estimate of your annual tax, spread across paychecks based on your W-4. Your actual tax is calculated when you file. Over-withholding produces a refund; under-withholding means you owe a balance.
Do all states withhold income tax?
No. Nine states, including Texas, Florida, and Washington, have no state income tax, so no state tax is withheld. States with an income tax withhold based on their own brackets or flat rates; enter your state's approximate rate here.
How can I change my take-home pay?
Adjust your Form W-4 with your employer. Claiming more dependents or deductions reduces withholding and increases take-home pay, while requesting extra withholding lowers take-home pay but reduces any balance due at filing.