8846 2023-2024 Form

Instructions and help about 8846 form

be going over IRS form 8846 credit for employer Social Security and Medicare taxes paid on certain employee tips so this is a tax form that most mostly is used by restaurant and beverage industry owners to report what's known as I guess FICA tax is paid and this is a credit a tax credit also known as the FICA tax credit so before we get into the form which consists of six lines that you attack attached to your income tax return we'll take a look at a couple of aspects of Social Security and Medicare taxes so first Social Security and Medicare tax up to a certain wage limit are paid in equal amounts by the employee and the employer so at for Social Security that is a 6.2 percent of the employees wages that includes hourly wages and tip income up to for 2022 a salary based limit of 147 thousand dollars on the other side the Medicare tax that's 1.45 of employee compensation without any salary limit so the combination of the Social Security and the Medicare taxes is 7.65 up to 147 000 for