Harry has two jobs.He earns $127,700 from his first job and $10,000 from his second job.How much total FICA withholding will Harry have withheld from his wages from working two jobs?

Question

Quizplus · Accepted Answer

The Social Security tax rate is 6.2% of the first $142,800 of wages earned in 2021, while the Medicare tax rate is 1.45% on all wages earned.

For Harry's first job, the FICA withholding would be: 
Social Security tax: $127,700 x 0.062 = $7,915.40 
Medicare tax: $127,700 x 0.0145 = $1,850.65 
Total FICA withholding for first job: $7,915.40 + $1,850.65 = $9,766.05

For Harry's second job, the FICA withholding would be: 
Social Security tax: $10,000 x 0.062 = $620 
Medicare tax: $10,000 x 0.0145 = $145 
Total FICA withholding for second job: $620 + $145 = $765

Therefore, Harry's total FICA withholding for both jobs would be: 
$9,766.05 + $765 = $10,531.05

The closest answer option is C, which is $10,503.05.

Harry Has Two Jobs