If you are required to withhold FICA taxes, you must also withhold federal income taxes. Your employee has requested that you withhold Ohio income taxes.
Social security taxes are broken into two parts - FICA taxes that are withheld on wages up to $84,900 for 2002 and Medicare taxes that are withheld on all wages regardless of how much the employee is paid. Percentages for withholding of the various taxes are:
| Employee | Employer | |
| Federal income tax | 0 to 38.6% | No Match |
| Ohio income tax | 0 to 8.075% | No Match |
| FICA | 6.2% | 6.2% Match |
| Medicare | 1.45% | 1.45% Match |
To determine the amount of federal income tax to be withheld, you should use the withholding tables in the current year’s IRS Circular A since withholding is based on the employee’s filing status, number of exemptions claimed and how often the employee is paid. Similar tables for withholding Ohio income taxes are available from the Ohio Department of Taxation.