Compute employee FICA taxes for the year on earnings of $108,000 at 6.2% on a limit of $106,800 for OASDI and 1.45% for Medicare.

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The FICA taxes consist of two parts: OASDI (Social Security) and Medicare. For OASDI, the tax is 6.2% on earnings up to the limit of $106,800, which equals $6,621.60 ($106,800 * 6.2%). For Medicare, there is no earnings cap, so the tax is 1.45% of the entire $108,000, which equals $1,566 ($108,000 * 1.45%). Adding these two amounts gives the total FICA taxes: $6,621.60 + $1,566 = $8,187.60.

Compute Employee FICA Taxes for the Year on Earnings of $108,000