Tax Withholding Calculator

EIN: identification number of the employer. Also known as a federal tax identification number and is used to identify a commercial entity. Normally you would need an identification number of the employer if you are employed or if you operate your business as a partnership or a corporation. The IRS website has a friendly guide called "Do you need an EIN? To help you decide if you need it or not. You can apply online for a new EIN (this is the easiest and fastest) by callingBusiness & Specialty Tax Line (800) 829-4933, by fax or mail.
Circular E: Guide for the employer tax, also known as Publication 15. This publication explains the responsibilities of employers for withholding, reporting, filing and payment of payroll taxes. It includes information on employment taxes such as income, social security, Medicare and federal unemployment. Circular is published annually by the end of the year.
EIC: earned incomeCredit. Also known as the earned income Tax Credit (EITC). The CIS is an important fight against poverty and work incentive program that is run by the federal government. The Earned Income Credit targets families or individuals who earn wages low to moderate. If a worker is eligible for the EIC to reduce or eliminate all taxes due. If an employee is not required to pay taxes or if the credit is larger than all the taxes owed by the worker, thenhe or she will receive a refund from the IRS after a tax return filing'm. In this case, the federal government is to provide low-income workers, additional funds beyond what they are paid their employment to encourage work and reduce poverty. To qualify for the EIC, a person should have a job, have wages below a certain level, and files a federal tax Revenue Service. There are other rules and restrictions that apply as well.
FUTA: FederalUnemployment Tax Act. Federal Unemployment Tax Act (Futa), systems of unemployment in the state, provides for the payment of unemployment benefits to workers who lose their jobs. Most employers pay both federal and state tax unemployment. Only the employer pays FUTA tax is not deducted from the salary of the employee. For 2007 and 2008, the rate is 6.2% Futa. The fee applies to first $ 7,000 that employers pay to each employeethat wages in the year. FUTA taxes are deposited on a quarterly basis: March 31 June 30, September 30 and December 31. IRS Form 940 is used to report federal unemployment tax, you can visit the IRS Web site for instructions for use of this form and obtain a copy of the form. In general, an employer is subject to FUTA tax if he / she pays $ 1,500 or more in a quarter in 2007 or 2008, where he had one or more employees for at least someweek on every single day more different in 2007 or 20 weeks or more, different in 2008 (this rule does not apply to employees who are farm laborers or household 20).
FICA: Federal Law on insurance contributions. FICA benefits provided to retired workers and to their families and to disabled workers and their families. The tax imposed under this fund Social Security Act to tax "and" Medicare Tax ". This tax is paid by the employee andemployer. For 2009, the base wage for Social Security (retirement, survivors and disability benefits) is $ 106.800. There is no limit base salary for Medicare. Social Security tax rate is 6.2%. For Medicare, the rate is 1.45% for employers and employees. There is no exemption for the calculation of the deduction allowable Medicare or Social Security taxes.