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Employers (in your case the S corp) generally must withhold federal income tax from employees' wages.
To figure out how much tax to withhold, use the employee’s Form W-4 and withholding tables described in Publication 15, Employer's Tax Guide. The W4 advises how many allowances to apply for the withholding on income tax. The tables in the publication are split into payroll periods, pay amount, and allowances.
Employers generally must withhold part of social security and Medicare taxes from employees' wages too and you pay a matching amount yourself. This information too is in Pub 15. For 2015, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total). The social security wage base limit is $118,500. The tax rate for Medicare is 1.45% (amount withheld) each for the employee and employer (2.9% total). There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax.
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