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Video instructions and help with filling out and completing Are Form 843 Abated

Instructions and Help about Are Form 843 Abated

True." Okay, for this video, I wanted to quickly cover a request for a refund of FICA taxes. So, FICA taxes are payroll taxes withheld from your wages. In certain cases in the U.S., you might be exempt from FICA taxes. If you have them withheld from your paycheck, you can file a refund claim to get those back. I've got one slide in front of us here with some of the rules and then an example form 843, which is the filing that's required in order to get this refund. Generally, if you are living and working in the U.S. for a US-based employer, your wages are going to be subject to federal payroll tax. That is the baseline rule that applies to 99% of people that are living and working in the United States. The payroll tax is assessed under the Federal Insurance Contributions Act (FICA), that's where we get FICA from. The tax rates, as of the end of 2021 and going forward foreseeably here, are going to be 6.2% of social security tax and then a 1.45% Medicare tax. These are assessed on the employee wages, and then the employer has to match it. So, it's basically these amounts times two in total, but you as the employer are responsible for half. If we look at an example here, we've got John. He's an accountant for a company in Florida. He makes $40,000 a year, which is all going to be subject to FICA. So, John's employer has to take $2,480 of social security tax out of his paychecks throughout the year. That's 6.2% times $40,000. And then $580 in Medicare, right? So, 1.45 times his $40k salary. These amounts are deducted from his paychecks and reported on a Form W-2 at year end. Okay, so...