Wyatt is a full-time exempt music engineer who earns $150,000 annually and is paid semimonthly. As of November 15, his year-to-date gross pay was $131,250. How much will be withheld for FICA taxes for the November 30 pay date? (Social Security maximum wage is $132,900. Do not round intermediate calculations.
Round your ﬁnal answer to 2 decimal places.)

Question

Quizplus · Accepted Answer

Wyatt's year-to-date gross pay is $131,250. The Social Security tax applies up to $132,900. For the November 30 pay date, only $1,650 ($132,900 - $131,250) is subject to Social Security tax at 6.2%, which is $102.30. The entire semimonthly pay of $6,250 ($150,000/24) is subject to Medicare tax at 1.45%, which is $90.63. Total FICA tax is $102.30 + $90.63 = $192.93.

Wyatt Is a Full-Time Exempt Music Engineer Who Earns $150,000