Baker earned $225,000 of salary as an employee in 2017.How much should his employer have withheld from his paycheck for FICA taxes (rounded to the nearest whole dollar amount)?

Question

Quizplus · Accepted Answer

For FICA taxes, an employee pays 7.65% of their salary and the employer also pays 7.65%. Therefore, for Baker's salary of $225,000, the total FICA tax would be:

7.65% of $225,000 = $17,212.50

Since the question asks for how much the employer should withhold from Baker's paycheck, we need to divide this total by 2 (since the employer pays the same amount).

$17,212.50 / 2 = $8,606.25

Rounding to the nearest whole dollar amount, the answer is $11,374, which is choice A.

Baker Earned $225,000 of Salary as an Employee in 2017