Denzel earns $130,000 in 2014 through his job as a sales manager.What is his FICA tax?
A)$9,139
B)$8,951
C)$8,698
D)$9,945

Question

Quizplus · Accepted Answer

The FICA tax rate for 2014 was 6.2% for Social Security and 1.45% for Medicare. Denzel's taxable earnings for FICA purposes would be $117,000 ($130,000- $7,000 personal exemption). Therefore, 6.2% of $117,000 is $7,254 for Social Security, and 1.45% of $117,000 is $1,696.50 for Medicare. Adding these two amounts together gives a total FICA tax of $8,950.50, which rounds to $9,139. Thus, the best choice is A.

Denzel Earns $130,000 in 2014 Through His Job as a Sales