|
FICA The provisions of the United States Old Age,
Survivors, and Disability Insurance Tax (OASDI) and the Hospitalization Insurance Tax (Medicare), commonly known as FICA or social security, are applicable in Puerto Rico as well as in the United States. The tax rate is 7.65% for each employer and employee of which 6.20% accounts for OASDI and 1.45% for Medicare. The maximum social security wage base for OASDI for the year 2000 is $76,200. There is
no limit of the amount of earnings subject to the Medicare earnings. Self employed taxpayers are subject to the total 15.3% tax rate comprised of 12.4% for OASDI and 2.9% for Medicare. The employee tax
must be withheld by the employer from the employees' wages and is paid by deposits, Form 8109, with Federal Reserve banks, or authorized financial institutions. Generally an employer is a monthly depositor for the
entire calendar year if the aggregate amount of employment taxes reported for the look-back period is $50,000 or less. If is greater than $50,000 and payroll period date is Saturday, Sunday, Monday or Tuesday, then a
deposit must be made on or before the following Friday. If payroll period date is Wednesday, Thursday or Friday, then a deposit must be made on or before the following Wednesday (semiweekly depositor). FICA
deposits of $100,000 or more are due the next banking day.
Unless exempted, tax pays whose aggregate annual deposits of certain taxes exceeded $200,000 for 1998 or any later year must deposit taxes by electronic funds transfer. For return periods beginning
before January 1, 2000, a taxpayer whose aggregate deposits of the taxes during a 12-month determination period exceed the applicable threshold amount must deposit all depository taxes due on and after the applicable
effective date by EFT, as follows:
Threshold Amount |
Determination Period |
Applicable Effective Date |
$47,000,000 |
1-1-93 to 12-31-93 |
January 1, 1996 |
$47,000,000 |
1-1-94 to 12-31-94 |
January 1, 1996 |
$50,000 |
1-1-95 to 12-31-95 |
January 1, 1997 |
$50,000 |
1-1-96 to 12-31-96 |
January 1, 1998 |
$50,000 |
1-1-97 to 12-31-97 |
January 1, 1999 |
|
|
