What Is FICA Tax? Rates, Calculations & How It Works

Article Summary: Financial statement audits provide independent verification of a company’s financial reporting accuracy. Businesses use audits to improve investor confidence, secure financing, maintain compliance, and reduce risk. Auditors review four key financial statements: the balance sheet, income statement, cash flow statement, and statement of shareholders’ equity. The audit process typically includes planning, internal control […]

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Interest expenses can reduce taxable income significantly. That is exactly why the IRS keeps a close watch on them. As businesses grow, borrow more capital, or expand operations, interest deductions often become larger and more complex. This is where Form 8990 enters the picture. Many businesses first encounter the form during tax filing season. Then […]

Article Summary: FICA tax is a mandatory U.S. payroll tax that funds Social Security and Medicare programs. Employees generally pay 7.65% of eligible wages, while employers contribute a matching 7.65%. FICA consists of two components: Social Security tax (6.2%) and Medicare tax (1.45%). Self-employed individuals typically pay the full 15.3% under Self-Employment Contributions Act (SECA) […]