Robert Martin's gross earnings for the week ended December 20 amount to $2,200. His cumulative gross earnings for the year up through the last pay period amount to $91,500. If the FICA tax rate is 6.2 percent for Social Security, with a limit of $113,700, and 1.45 percent for Medicare, applied to all earnings, the total FICA tax to be withheld is

Question

Quizplus · Accepted Answer

The FICA tax rate for Social Security is 6.2 percent, with a limit of $113,700. Robert Martin's gross earnings for the year up through the last pay period amount to $91,500, so he is below the limit. Therefore, the Social Security tax withheld is $91,500 x 0.062 = $5,655.The FICA tax rate for Medicare is 1.45 percent, applied to all earnings. Therefore, the Medicare tax withheld is $2,200 x 0.0145 = $31.90.The total FICA tax withheld is $5,655 + $31.90 = $5,686.90.

Robert Martin's Gross Earnings for the Week Ended December 20