On January 3,2016,Terrence employed a part-time household worker in his home.He paid the household worker $720 per month for 2016.What amount of FICA taxes is Terrence required to record on Schedule H?

Question

Quizplus · Accepted Answer

The FICA taxes for a household worker in 2016 were 15.3% of their wages, with 7.65% paid by the employer and the other 7.65% withheld from the worker's pay. Therefore, for Terrence:

- The employer's portion of FICA taxes would be 7.65% of $720/month x 12 months = $659.52 
- He would also owe an additional 7.65% of $720/month x 12 months = $659.52 as the employee's portion of FICA taxes 
- So the total FICA taxes owed by Terrence would be $659.52 + $659.52 = $1,319.04

Rounding up to the nearest cent, the closest answer is C) $1,321.92.

On January 3,2016,Terrence Employed a Part-Time Household Worker in His