Baker is single and earned $225,000 of salary as an employee in 2019.How much should his employer have withheld from his paycheck for FICA taxes? (Round your answer to the nearest whole dollar amount.)

Question

Quizplus · Accepted Answer

FICA taxes consist of Social Security and Medicare taxes. For 2019, the Social Security tax rate was 6.2% on earnings up to $132,900, and the Medicare tax rate was 1.45% on all earnings, with an additional 0.9% Medicare tax on earnings over $200,000 for single filers. Baker's salary of $225,000 means he would pay 6.2% on the first $132,900 for Social Security ($8,239.80) and 1.45% on the entire $225,000 for Medicare ($3,262.50), plus an additional 0.9% on the $25,000 over $200,000 ($225). Adding these amounts gives us $11,727.30, which rounds to $11,727.

Baker Is Single and Earned $225,000 of Salary as an Employee