Andrew,an employee of Super Retailer,Inc.,has gross salary for March of $5,500.The entire amount is under the OASDI limit of $118,500 and thus subject to FICA.The total amount of employee FICA tax is $841.50.(Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.)

Question

Quizplus · Accepted Answer

Employee FICA tax = Gross Salary × FICA rate
Employee FICA tax = $5,500 × 7.65% = $420.75

Andrew,an Employee of Super Retailer,Inc