Loretta has two jobs.She earned $120,000 from her first job and $20,000 from her second job.How much total FICA taxes will Loretta have withheld from her wages from working two jobs?

Question

Quizplus · Accepted Answer

The FICA tax rate for social security is 6.2% on the first $118,500 of wages and the FICA tax rate for Medicare is 1.45% on all wages. 
For Loretta's first job, the social security tax withheld will be 6.2%(118,500) = $7,347. The Medicare tax withheld will be 1.45%(120,000) = $1,740.
For Loretta's second job, the social security tax withheld will be 6.2%(20,000) = $1,240. The Medicare tax withheld will be 1.45%(20,000) = $290.
Therefore, the total FICA tax withheld will be $7,347 + $1,740 + $1,240 + $290 = $10,617.00.

Loretta Has Two Jobs