Denzel earns $120,000 in 2013 through his job as a sales manager.What is his FICA tax?

Name: Denzel earns $120,000 in 2013 through his job as a sales manager.What is his FICA tax?
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Question

Quizplus · Accepted Answer

FICA tax consists of two parts - Social Security tax (6.2% on income up to $117,000 in 2013) and Medicare tax (1.45% on all income). Therefore, Denzel's FICA tax would be (6.2% + 1.45%) * $120,000 = $8,788.8, which rounds up to $8,789. Choice A is the closest option to this calculated amount.

Denzel Earns $120,000 in 2013 Through His Job as a Sales