An employee earned $128,500 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $118,500 maximum per year and the rate for FICA Medicare 1.45% of all earnings. The employer's total FICA payroll tax for this employee is:

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Quizplus · Accepted Answer

The employer's total FICA payroll tax is 6.2% for Social Security and 1.45% for Medicare, for a total of 7.65%. The maximum amount of earnings subject to Social Security tax is $118,500, so the Social Security tax is $118,500 x 0.062 = $7,347. The Medicare tax is 1.45% of all earnings, so the Medicare tax is $128,500 x 0.0145 = $1,863.25. The total FICA payroll tax is $7,347 + $1,863.25 = $9,210.25.

An Employee Earned $128,500 Working for an Employer in the Current