Assuming a FICA tax rate of 8% on the first $100,000 in wages, and a federal income tax rate of 20% on all wages, what would be an employee's net pay for the year if he earned $110,000 for the year?

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Quizplus · Accepted Answer

The FICA tax is 8% on the first $100,000, which is $8,000. The federal income tax is 20% on the entire $110,000, which is $22,000. The total tax is $8,000 + $22,000 = $30,000. Therefore, the net pay is $110,000 - $30,000 = $80,000.

Assuming a FICA Tax Rate of 8% on the First