Feeling FICA
What does FICA stand for?
FICA stands for the Federal Insurance Contributions Act.
The history of the act reverts back to the year 1935, when the government implemented the social security program.
A provision to include social security taxes was included in this act.
However, due to concerns over the constitutionality of the 1935 act, there were amendments made and the provision for collecting social security taxes was moved to the Internal Revenue Code in 1939.
At this time it was renamed the Federal Insurance Contributions Act.
What is
FICA exactly?
The Federal Insurance Contributions Act authorizes the IRS to collect taxes for the benefit of the social security program.
Intuitively, we might think of these taxes as social security taxes, but more commonly they are referred to as FICA taxes.
These FICA taxes serve as deposits into the federal social insurance program we think of today as Social Security.
According to FICA, you must contribute 12.4 percent of your earned income up to the predetermined limit of contributions, and another 2.9 percent must be contributed to Medicare.
It is important to note that there is no earnings limit on the Medicare portion of the tax, and thus in practice one is taxed 2.9 percent of all earned income, regardless of your total income level.
For those working for hourly wages the tax levels are different.
Hourly employees contribute 6.2 percent for Social Security and 1.45 percent for Medicare.
Hopefully you noticed that this is just half of the standard rates.
There is good reason for this as your employer is required to pay the other half of the rate for Social Security and Medicare contributions.
In other words, for those working at hourly wages, the employer must match the employee contributions.
How would you spend your FICA?
Let's imagine we live in a perfect world, and we don't have to pay taxes.
That means no more contributions to FICA .
Now, after the excitement settles down we must decide what to do with our extra income.
Let's pretend we work a part time job, because we are still studying to get our degree in economics.
Fortunately, we have a decent job paying $11 bucks an hour assisting an up and coming lawyer.
Typically, we put in a 25 hour work week, meaning we make about $275 a week.
That is exactly $1100 dollars every month.
If we made $1100 every month, the FICA taxes we would normally contribute would break down like this:
Social Security:
$1100 X 6.2%
=
$68.20
Medicare:
$1100 X 1.45% = $15.95
$84.15
So by not having to pay taxes, particularly FICA, we would increase our cash flow
by $84.15 each month.
Now the fun begins.
What are the ways we could spend our hard earned cash.
I know what I would do.
I would begin by signing a lease agreement with TiVO for one of their popular digital video recording options.
With this contract, I allocate $12.95 of my savings each month to the TiVO
service.
To complement my new DVR, I would go ahead and splurge on the best satellite service in the area.
I estimate the cost would come in around $50 a month. As a college student I would likely be coerced into filling the music void in my life by signing up for an all you can consume digital music subscription service, running approximately $9.95 a month.
Just like that I am only left with about $10 more in cash flow each month, which could easily be spent seeing one or two movies every month.
Snap Back to Reality
Well, unfortunately life is not that easy.
We do have to pay FICA, and the contributions we make go a long way in improving the living conditions of others.
So for now, plan on paying those FICA taxes, or should I say contributions.
.
Thanks to S&C's PureWave UPS, August Blackout Has Little Impact on Semiconductor Production
Franklin, WI
October 24, 2003 -? The August 2003 blackout affected much of the northeastern US and Canada, but manufacturing went on as usual at Emcore Corporation, a New Jersey semiconductor manufacturer.
Seeking to ensure optimum power quality for their critical processes, Emcore installed a 2500-kVA / 2000-kW S&C PureWave UPS? System in June 2002.Emcore was hit by a variety of voltage disturbances starting around 4:10 p.m. on August 14. The PureWave UPS System protected their production equipment five times during the initial collapse of the power distribution system, with operations ranging from 0.25 to 42 seconds.
There was no loss of production.S&C's PureWave UPS System, available in ratings to 20 MVA, delivers whole-facility protection from utility power source problems for critical power users in data processing, chemical and pharmaceutical manufacturing, and other continuous-process industries.
The PureWave UPS System can be installed indoors...
Thanks to S&C's PureWave UPS, August Blackout Has Little Impact on Semiconductor Production
Dvr > Thanks to S&C's PureWave UPS, August Blackout Has Little Impact on Semiconductor Production
Octave Systems, Inc. New DVD Copier Dazzles
It features a new dual-layered and dual-format Pioneer drive that records speeds of up to 16X. With the dual layering, the DVD Copy Master can store up to 8.5 gigabytes of data. Octave's updated stand-alone DVD Copy Master offers efficiency and economy like no other DVD duplicator.The DVD Copy Master makes copying DVDs as easy as touching a button and requires no computer system. The DVD Copy Master functions with virtually all available formats. DVDs burn at speeds from 2X to 16X while CDs will burn at speeds up to 32X.
The 8.5 gigabyte media capacity provides enormous storage. Speed and accuracy are never in doubt with the dual-format Pioneer DVR-A08 DVD-?RW/CD-RW drive.Copies can be made directly from the DVD or from the 120 gigabyte hard drive. Copies can be made directly from a source DVD or simultaneously. Up to seven DVDs can be made at one time from the first DVD Recorder being used as the source drive or 8 can be made at one time from the hard disc drive.Making a copy...
Octave Systems, Inc. New DVD Copier Dazzles
Dvr > Octave Systems, Inc. New DVD Copier Dazzles
The Coming Television Revolution
The revolution is just getting started and will begin to make its mark this year. By 2010, it will begin to take off. By 2025, it will be the standard for all TV viewing. It's called Internet Protocol Television, or IPTV for short. IPTV works with a set-top box connected to any broadband interface and to a TV.
It will allow users to choose among thousands (and eventually hundreds of thousands) of hours of programming, including movies, sports, classic TV, etc., and download their selections from the internet to the hard drive of the set-top box. Initially, set-top box hard drives will be able to store up to 300 hours of programming at a time, but capacity will expand as the technology becomes more refined. Also, download times will become shorter and shorter as broadband connection speeds become faster and faster. Eventually, a two-hour movie will be fully downloadable in a couple of minutes. Once the programs are downloaded to the hard drive, they can be viewed on the connected...
The Coming Television Revolution
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Free Satellite TV
Television that comes through communication satellites is referred to as satellite television. Digital signals are beamed from satellites to users and these are of three primary types: signals received directly by the viewer, that received by local television affiliates for distribution, or reception by headends for distribution through cables.
Of the many satellite TV systems Dish Network and Direct TV are the main players. Both offer "free" satellite TV systems for four rooms with a bouquet of other services like over 250 program selections.
What is free to a first time user is the equipment needed to capture the TV signals. Otherwise one has to pay for viewing and choose a package that suits personal requirements. Many companies and online sites offer free services and enticing satellite TV deals but most of these are scams.
Beware of traps and believe in the maxim "nothing in life is for free."
Choose a service that has an established...
Dvr > Free Satellite TV
DIRECTV Satellite Television Dealers - Who's Got the Best Deal?
DIRECTV Satellite Television Dealers
There are currently two major satellite TV providers in the U.S. - DISH Network and DIRECTV. And there are hundreds of satellite television dealers who sell their services.
Most of those dealers claim they'll give you the best deal on DIRECT satellite TV equipment and service. But which ones really deliver? And how do you know they won't hit you with hidden service fees, install your system improperly, or give you lousy customer service?
Here's a comparison of the top three online DIRECTV satellite TV dealers so you can make an informed decision as to which dealer to use.
Rapid Satellite (highly recommended)
Established in 1999, Rapid Satellite is one of DIRECTV's highest rated satellite TV dealers.
They've installed hundreds of thousands of satellite TV systems in hundreds of cities and towns across the U.S.A. Rapid Satellite has more than 100 customer...
DIRECTV Satellite Television Dealers - Who's Got the Best Deal?
Dvr > DIRECTV Satellite Television Dealers - Who's Got the Best Deal?
How to Choose the Right Webcam Surveillance Software?
Many people want to have some kind of spy equipment for better home security. However, besides wireless spy cameras, VCR or DVR systems, there is also special software used to control those surveillance gadgets.
Large companies use professional security systems along with already built in (embedded digital video recorder or PC based DVR soft) spy camera control software. But what about smaller guys? Do you also have to spend thousands of dollars for professional spy security system and software to feel safe and secure in your house? And the answer is not necessarily.
Webcam for Spying Purposes
You have the ability to use your webcam (connected to your PC) as a surveillance tool. And to control it, all you need is inexpensive webcam surveillance software.
As a matter of fact, such software allows you to connect more than one camera. It can display as much as 16 webcam views on your computer screen.
Moreover, webcam...
Dvr > How to Choose the Right Webcam Surveillance Software?
The plus point of free satellite TV deals
If you still have not subscribe to DirecTV or Dish Network deals, maybe you should take a look on this as satellite TV becomes the fastest selling products in U.S. history. The plus point of free satellite TV deals offered by Dish Network or DirecTV:More alternatives: Lots of satellite TV dealers are promoting their satellite TV deals aggressively. High competition leads to better quality and more options. You can always compare satellite packages offered from different retailers to find the finest satellite systems set up and service for your needs.Programming: A basic 256 channels from Dish Network satellite or 255 channels from DirecTV satellite are commonly subscribed by satellite TV users.
TV channels received might differ between Dish Network and DirecTV, but the major channels provided by them are almost the same. Regardless on the satellite TV dealers you pick, the subscription fees are fixed. Thus, subscription fees shouldn't be an issue when you are selecting your satellite...
The plus point of free satellite TV deals
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Mortgage suiting you best today
Several mortgage products are on offer today. The big question arising in the mind of the mortgage seeker is: which is the best bet?
In the various states of the U.S. the interest only mortgages and adjustable rate mortgages (ARMs) have lately been taking the mortgage market by storm. The traditional 30 year fixed rate mortgages have as a result received a setback. The latest offering in the U.S.
mortgage industry is the interest only hybrid ARM.
At...
Dvr > Mortgage suiting you best today
Understanding Real Estate Terminology
Purchasing a home can be a complicated and confusing process, especially for first-time buyers. Throughout the process, first-time home buyers will encounter a variety of unfamiliar real state terms. There are several key terms associates with purchasing real estate that are helpful to learn.For example, many buyers confuse the terms broker and salesperson. A broker is a properly licensed individual, or corporation, who serves as a special agent in the purchase and sale of real estate, a salesperson...
life insurance Feeling FICA Understanding Real Estate Terminology
Dvr > Understanding Real Estate Terminology
A Guide To Discount Tires
Worn tires compromise an automobile's safety, traction, and gas mileage. Buying new tires is intimidating due to the cost; thus a number of car owners replace worn tires with discount tires. Discount tires may be bought from the original dealership, warehouse stores, or the automobile section at a department store.
When purchasing discount tires, a car owner must be aware of the manufacturer's name, model year, and model name of the vehicle. That is generally all a tire store needs...
Dvr > A Guide To Discount Tires