Asteria earned a $25,500 salary as an employee in 2019.How much should her employer have withheld from her paycheck for FICA taxes? (Round your answer to the nearest whole dollar amount.)

Question

Quizplus · Accepted Answer

FICA taxes consist of Social Security tax (6.2% of earnings up to $132,900 in 2019) and Medicare tax (1.45% of all earnings). Therefore, Asteria's employer should have withheld $1,580.75 for Social Security tax ($25,500 x 6.2%) and $369.38 for Medicare tax ($25,500 x 1.45%). Adding those amounts together gives a total of $1,950.63, which rounds up to $1,951. Therefore, the correct answer is C.

Asteria Earned a $25,500 Salary as an Employee in 2019