Asteria earned a $26,200 salary as an employee in 2020. How much should her employer have withheld from her paycheck for FICA taxes? (Round your answer to the nearest whole dollar amount.)

Question

Quizplus · Accepted Answer

FICA taxes consist of Social Security tax and Medicare tax. For Social Security tax, the employee pays 6.2% of their salary and the employer pays a matching 6.2%. For Medicare tax, the employee pays 1.45% and the employer pays a matching 1.45%. Therefore, Asteria's employer should have withheld a total of 7.65% (6.2% + 1.45%) from her paycheck for FICA taxes, which would be $2,004 (7.65% of $26,200). Therefore, the best choice is C.

Asteria Earned a $26,200 Salary as an Employee in 2020