by Ekrem Duman | Jun 20, 2026 | Country Tax Guides, US Tax
Accounting › Country Tax Guides › US Tax ⚡ TL;DREmployers must withhold income tax and the employee’s FICA from wages, pay a matching 7.65% FICA, deposit these with the IRS on a set schedule, and pay federal and state unemployment taxes...
by Ekrem Duman | Jun 20, 2026 | Country Tax Guides, US Tax
Accounting › Country Tax Guides › US Tax ⚡ TL;DRThe US tax system is pay-as-you-go. Employees have tax withheld from each paycheck based on their W-4; the self-employed and those with other income make quarterly estimated tax payments. Pay too little...
by Ekrem Duman | Jun 20, 2026 | Country Tax Guides, US Tax
Accounting › Country Tax Guides › US Tax ⚡ TL;DRA W-2 reports wages for employees, with the employer withholding income tax and FICA. A 1099 reports payments to independent contractors, who get no withholding and owe self-employment tax themselves. The...
by Ekrem Duman | Jun 20, 2026 | Country Tax Guides, US Tax
Accounting › Country Tax Guides › US Tax ⚡ TL;DRSelf-employed people pay self-employment (SE) tax — 15.3% on net earnings, covering both the employee and employer shares of Social Security (12.4% up to $176,100 in 2025) and Medicare (2.9%, uncapped). You...
by Ekrem Duman | Jun 20, 2026 | Country Tax Guides, US Tax
Accounting › Country Tax Guides › US Tax ⚡ TL;DRFICA payroll taxes fund Social Security and Medicare. For 2025, employees and employers each pay 6.2% Social Security on wages up to $176,100, plus 1.45% Medicare on all wages — 7.65% each. High earners pay...
by Ekrem Duman | Jun 20, 2026 | Country Tax Guides, US Tax
Accounting › Country Tax Guides › US Tax ⚡ TL;DRTax credits cut your tax bill dollar for dollar, making them more valuable than deductions. The biggest for families are the Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC), which can be...
