On January 3,2017,Terrence employed a part-time household worker in his home.He paid the household worker $720 per month for 2017.What amount of FICA taxes is Terrence required to record on Schedule H?

Question

Quizplus · Accepted Answer

Schedule H is used to report household employment taxes, which include both Social Security and Medicare taxes (FICA taxes). In 2017, the Social Security tax rate for employees is 6.2% and the Medicare tax rate is 1.45%. The employer is required to pay the same amount of taxes on behalf of the employee, resulting in a combined FICA tax rate of 15.3%.

To calculate the amount of FICA taxes that Terrence is required to record on Schedule H, we need to first multiply the employee's annual salary by the FICA tax rate of 15.3%.

$720 x 12 = $8,640 (employee's annual salary)
$8,640 x 15.3% = $1,321.92 (total FICA taxes)

Therefore, the correct answer is C) $1,321.92.

On January 3,2017,Terrence Employed a Part-Time Household Worker in His