Ebony earned $86,760 during 2017.She is single,paid semimonthly,and claims one withholding allowance.How much will Ebony's employer withhold from her,in total for each pay period for FICA and federal withholding taxes? (Round your answer to 2 decimal places. )

Question

Quizplus · Accepted Answer

To calculate the total withholding for FICA and federal taxes, we need to consider the following:

1. FICA taxes: Ebony's gross pay for the year is $86,760, which means she earns $3,365.38 for each semimonthly pay period. The Social Security tax rate is 6.2%, which means Ebony's employer will withhold 6.2% * $3,365.38 = $208.63 for Social Security tax each pay period. The Medicare tax rate is 1.45%, which means Ebony's employer will withhold 1.45% * $3,365.38 = $48.71 for Medicare tax each pay period.

2. Federal withholding taxes: Ebony claims one withholding allowance, which means her employer will use the IRS tax tables to determine how much federal tax to withhold from her paycheck. Based on these tables, we can estimate that Ebony's federal tax withholding will be around $279.26 each pay period.

Therefore, the total amount that Ebony's employer will withhold from her paycheck each pay period for FICA and federal taxes is $208.63 + $48.71 + $279.26 = $536.60. Since Ebony is paid semimonthly, this amount will be withheld from her paycheck 24 times during the year.

We round the answer to 2 decimal places for the total amount being $536.60 (option B).

Ebony Earned $86,760 During 2017