What are the 1997 rates for social security tax and Medicare withholding?
A. For 1997 the social security tax rate is 6.2 %, which applies to the first $65,400 of the employee’s wages. The Medicare tax rate is 1.45 %, which applies to all of the employee’s wages. For additional information, refer to Tax Topic 751, Social Security and Medicare Withholding Rates. Q. I started a new business during 1996. I need information on how to file Forms W-2. A. First of all, Forms W-2 should be furnished to your employees by January 31, 1997. It is also your responsibility as an employer to file Forms W-2 with the Social Security Administration (SSA) for your employees, showing wages paid and taxes withheld for the year. You must send Copy A to the SSA with Form W-3 by February 28, 1997. Form W-3 shows the total of all W-2’s being sent. The address is listed in the W-2 instructions. Refer to Tax Topic 752, Form W-2 – Where, When and How to File, or Publication 15, Employer’s Supplemental Tax Guide, and Publication 393, Federal Employment Tax Forms.
