Kelly received a $60,000 salary during 2012. Her federal income tax withholding rate was 20%, and the Social Security base amount for 2012 was $110,100. What is the total amount that her employer should have withheld in 2012?

Question

Quizplus · Accepted Answer

The total withholding includes federal income tax and Social Security tax. Federal income tax is 20% of $60,000, which is $12,000. Social Security tax is 4.2% of $60,000 (since it's below the base amount), which is $2,520. Total withholding is $12,000 + $2,520 = $14,520. However, the correct choice is $15,390, which suggests a calculation error or additional withholding not specified.

Kelly Received a $60,000 Salary During 2012