Natalia is a full-time exempt employee who earns $215,000 annually, paid monthly. Her year-to-date pay as of November 30 is $197,083.33. How much will be withheld from Natalia for FICA taxes for the December 31 pay date? (Social Security maximum wage is $132,900. Do not round intermediate calculations. Round
Your ﬁnal answer to 2 decimal places.)

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Quizplus · Accepted Answer

Natalia's Social Security tax is calculated on the first $132,900 of her annual income. Since her year-to-date pay is already above this limit, no Social Security tax will be withheld in December. For Medicare, the tax rate is 1.45% on all earnings. Her December pay is $215,000/12 = $17,916.67. The Medicare tax is 1.45% of $17,916.67, which is $259.79. Additionally, there is an additional Medicare tax of 0.9% on earnings over $200,000. Her total earnings for the year will be $215,000, so the additional Medicare tax applies to $15,000 ($215,000 - $200,000), which is $135.00. Total FICA tax for December is $259.79 + $135.00 = $394.79.

Natalia Is a Full-Time Exempt Employee Who Earns $215,000 Annually