Angie earned $124,200 during 2016.She is single,claims two withholding allowances,and is paid monthly.How much FICA tax must Angie's employer remit to the federal government in 2016?

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Quizplus · Accepted Answer

FICA tax consists of two parts: Social Security and Medicare. The Social Security tax rate is 6.2%, and the wage base limit for 2016 is $118,500. Therefore, the maximum amount of Social Security tax that Angie will owe is $7,347. The Medicare tax rate is 1.45%, and it applies to all of Angie's earnings. Therefore, Angie's employer will remit $1,802.80 ($124,200 x 1.45%) in Medicare taxes. The total FICA tax that Angie's employer must remit to the federal government is the sum of the Social Security and Medicare taxes, which is $9,149.80. Subtracting the total FICA tax from Angie's total earnings gives her taxable income, which is $124,200 - $9,149.80 = $115,050. To calculate Angie's federal income tax liability, we need more information about her deductions and other relevant factors.

Angie Earned $124,200 During 2016