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Stephanie B.
Stephanie B., Enrolled Agent
Category: Tax
Satisfied Customers: 556
Experience:  MTax, EA, QuickBooks Proadvisor. Over 15 years accounting and tax experience specializing in individual and small business.
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How do I calculate monthly tax liability for line 16 on the

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How do I calculate monthly tax liability for line 16 on the 941 form?
January Payroll $ 4,410 Medicare + Social security = $ 337.36
February Payroll $ 6, 920 Medicare + Social Security= $ 529.40
March Payroll $ 15, 680 Medicare + Social Security=$ 1,199.52

Stephanie B. :

The total liability to report each month in 2013 is the gross taxable wage times 15.3% (both the employee's and employer's portion) plus federal withholding. So, if your gross taxable wage for January is $4410, the liability is $4410 X .153= $674.73 for SS and Medicare plus the federal withholding.

Stephanie B. :

Sorry, I was having trouble with the chat.

Stephanie B. :

Does this make sense?

Customer:

Thank you so much :) I understand it.

Stephanie B. :

Very good!! If you have any more troubles, just let me know. I will be glad to help you.

Customer:

Okay, thank you.

Stephanie B. :

You are welcome!

Customer:

January Payroll $ 4,410 x .153%=674.73


Medicare + Social security = $ 337.36 + $ 674.73= 1012.09


February Payroll $ 6, 920 x.153 = 1058.76


Medicare + Social Security= $ 529.40 + 1058.76 = 1,588.16


March Payroll $ 15, 680 x .153 % =2399.04


Medicare + Social Security=$ 1,199.52 + 2399.04= 3,598.56


Total liability $ 6,198.81 this is close to


The total on line 10 is $7, 164.53

Stephanie B. :

What is the federal withholding for each month?

Stephanie B. :

The 15.3% is the employer SS and Medicare withholding along with the employer's SS and withholding they are to match.

Stephanie B. :

So, you withhold 7.65% from the employee for SS and Medicare along with their federal withholding.

Stephanie B. :

The company matches the SS and Medicare at 7.65% as well.

Stephanie B. :

These two combined equals the 15.3%.

Customer:

Taxable social security is .124 and medicare is .029 Federal withhoding percentage I am not sure

Stephanie B. :

How much was withheld from the employee's checks for the federal withholding? That is the missing figure.

Stephanie B. :

If you add the .124 and the .029 together, that equals the .153 or 15.3% I was talking about earlier.

Stephanie B. :

Have you paid in the 941 deposits for the January - March payroll?

Customer:

OH okay I understand

Stephanie B. :

What this section of the 941 is trying to do is to ensure you have paid in the proper amount of 941 deposits timely for the quarter.

Customer:

Thank you so much for your help. You have been very helpful. I am going to give you Excellent service rating :)

Stephanie B. :

Thank you!! I appreciate that!

Customer:

Have a nice day :)

Stephanie B. :

Good luck and if you need further assistance, please let me know.

Have a nice day as well!

Stephanie B. and other Tax Specialists are ready to help you

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