Tom's gross pay for the month is $2,400.Tom's deduction for federal income tax is based on a rate of 20%.Tom has no voluntary deductions.Tom's yearly pay is under the limit for OASDI.What is the amount of FICA tax withheld from Tom's pay? (Assume a FICA-OASDI Tax of 4.2% and FICA-Medicare Tax of 1.45%.)

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Quizplus · Accepted Answer

The FICA tax includes both OASDI and Medicare taxes. OASDI is 4.2% and Medicare is 1.45%. So, the total FICA tax rate is 5.65%. Calculating 5.65% of $2,400 gives $135.60.

Tom's Gross Pay for the Month Is $2,400