Angie earned $129,200 during 2017.She is single,claims two withholding allowances,and is paid monthly.How much FICA tax must Angie's employer remit to the federal government in 2017?

Question

Quizplus · Accepted Answer

To calculate FICA tax, we first need to determine Angie's gross monthly income which is $10,766.67 ($129,200/12). Then we need to calculate her Social Security and Medicare taxes separately.

- Social Security tax = 6.2% of gross income up to $127,200. So for Angie, her Social Security tax for the year would be: 6.2% x $127,200 = $7,886.40
- Medicare tax = 1.45% of all gross income. So for Angie, her Medicare tax for the year would be: 1.45% x $129,200 = $1,874.40

To find out how much FICA tax Angie's employer must remit to the federal government, we add her Social Security and Medicare taxes together: $7,886.40 + $1,874.40 = $9,760.80. Multiply this by 2 since the employer also must pay the same amount, we get $19,521.60. However, because Angie claims 2 withholding allowances, her employer does not have to withhold $4,150 (2 x $4,150) from her gross income. Therefore, the final answer is $19,521.60 - $4,150 = $19,371.60, which is closest to option B ($19,519.60).

Angie Earned $129,200 During 2017