Natalia is a full-time exempt employee who earns $215,000 annually, paid monthly. Her year-to-date pay as of November 30 is $197,083.33. How much will be withheld from Natalia for FICA taxes for the December 31 pay date? (Social Security maximum wage is $127,200. Do not round interim calculations, only round final answer to two decimal points.)

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Quizplus · Accepted Answer

Natalia has already exceeded the Social Security wage base of $127,200, so no Social Security tax will be withheld in December. Only Medicare tax at 1.45% will be withheld on her December salary of $17,916.67 ($215,000/12), which equals $259.79. Additionally, the Additional Medicare Tax of 0.9% applies to income over $200,000, so $135.00 (0.9% of $15,000) will also be withheld. Total FICA taxes: $259.79 + $135.00 = $394.79.

Natalia Is a Full-Time Exempt Employee Who Earns $215,000 Annually