The chief executive officer earns $20,000 per month.As of June 30,her gross pay was $120,000.The tax rate for Social Security is 6.2% of the first $127,200 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings.The current FUTA tax rate is 0.6%,and the SUTA tax rate is 4.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.What is the amount of FICA - Medicare withheld from this employee for the month of July?

Question

Quizplus · Accepted Answer

The FICA - Medicare tax is 1.45% of all earnings. For July, the earnings are $20,000. Therefore, the Medicare tax withheld is 1.45% of $20,000, which equals $290.00.

The Chief Executive Officer Earns $20,000 Per Month