Brian Temple's cumulative earnings are $73,000,and his gross pay for the week is $5,300.If the FICA rates are: OASDI 6.2% on a limit of $106,800 and Medicare is 1.45%,what are his FICA-OASDI and FICA-Medicare taxes for the week?
A)$0; $76.85
B)$328.60; $0
C)$328.60; $76.85
D)$3,286; $768.50

Question

Quizplus · Accepted Answer

- To calculate FICA-OASDI tax, we need to find the amount of cumulative earnings that are subject to OASDI tax. Since the limit for OASDI tax is $106,800, and Brian's cumulative earnings are $73,000, all of his earnings are subject to the tax. Therefore, his FICA-OASDI tax for the week is: $5,300 * 6.2% = $328.60.
- To calculate FICA-Medicare tax, we simply multiply the gross pay for the week ($5,300) by the Medicare tax rate (1.45%): $5,300 * 1.45% = $76.85.
- Therefore, the total FICA taxes for the week are $328.60 + $76.85 = $405.45, which is closest to option C: $328.60; $76.85.

Brian Temple's Cumulative Earnings Are $73,000,and His Gross Pay for the Week