Dave Brown's cumulative earnings are $102,000,and his gross pay for the week is $5,300.If the FICA rates are: OASDI 6.2% on a limit of $117,000 and Medicare is 1.45%,what are his FICA-OASDI and FICA-Medicare taxes for the week?
A)$297.60;$76.85
B)$0;$0
C)$31.00;$7.25
D)$328.60;$76.85

Question

Quizplus · Accepted Answer

First, we need to determine if Dave Brown has reached the Social Security tax limit of $117,000. Since his cumulative earnings are $102,000, he has not yet reached the limit. Therefore, we will use the full gross pay of $5,300 to calculate his FICA-OASDI tax.

FICA-OASDI tax: $5,300 x 6.2% = $328.60

Next, we will calculate Dave Brown's FICA-Medicare tax using his gross pay of $5,300.

FICA-Medicare tax: $5,300 x 1.45% = $76.85

Therefore, the total FICA-OASDI and FICA-Medicare taxes for the week are $328.60 and $76.85 respectively, which is option D.

Dave Brown's Cumulative Earnings Are $102,000,and His Gross Pay for the Week