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Confusion Over Federal Unemployment Tax Directive
Arizona employers misinterpret a federal directive that raised unemployment tax by 2 percent. The IRS district director notes errors in applying the increase to social security tax. Social security withholds 3 percent from the first 4,800 dollars of wages with a matching employer contribution. Maximum social security tax is 6 percent.
MENTIONED IN THIS ARTICLE
Arizona
U.S. Internal Revenue Service
Maxium Social Security Taw