Jeremiah is a full-time exempt employee who earns an annual salary of $215,000.What is the employer's annual FICA tax responsibility for Jeremiah's salary,based on an annual wage base of $118,500?

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Quizplus · Accepted Answer

The employer's FICA tax responsibility includes Social Security tax (6.2% up to the wage base of $118,500) and Medicare tax (1.45% on the entire salary). The Social Security tax is $118,500 * 6.2% = $7,347, and the Medicare tax is $215,000 * 1.45% = $3,117.50. Total FICA tax = $7,347 + $3,117.50 = $10,464.50.

Jeremiah Is a Full-Time Exempt Employee Who Earns an Annual