Matthew earned $150,000 in wages during 2019. FICA taxes withheld by his employer would have been $11,475.

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 no cap. For $150,000 in wages, the total FICA taxes would be $9,180 for Social Security (6.2% of $132,900, since $150,000 exceeds the cap) plus $2,175 for Medicare (1.45% of $150,000), totaling $11,355, not $11,475.

Matthew Earned $150,000 in Wages During 2019