An employee earned $47,000 during the year working for an employer.The FICA tax for social security is 6.2%,and the FICA tax for Medicare is 1.45%.The employee's share of FICA taxes is:
A)$681.50.
B)$2,914.00.
C)$3,595.50.
D)$7,191.00.
E)Zero,since the employee's pay exceeds the FICA limit.

Question

Quizplus · Accepted Answer

To calculate the employee's share of FICA taxes, we need to start by calculating the amount of wages subject to FICA taxes. In 2020, the Social Security tax rate applies to wages up to $137,700. Since the employee earned $47,000, all of their wages are subject to FICA taxes.

Calculating the Social Security tax:

$47,000 x 6.2% = $2,914.00

Calculating the Medicare tax:

$47,000 x 1.45% = $681.50

Adding the Social Security and Medicare taxes together:

$2,914.00 + $681.50 = $3,595.50

Therefore, the employee's share of FICA taxes is $3,595.50, which is option C.

An Employee Earned $47,000 During the Year Working for an Employer.The