Sally Marks has cumulative earnings of $112,500 and earns $5,500 during the current pay period. If the FICA rate is 6.2% for Social Security, with a limit of $113,700, and 1.45% for Medicare, applied to all earnings, the total FICA tax to be withheld for this pay period is:

Question

Quizplus · Accepted Answer

The FICA tax for Social Security is 6.2% of the first $113,700 of earnings, which is $112,500 + $5,500 = $118,000. The FICA tax for Medicare is 1.45% of all earnings, which is $5,500. The total FICA tax to be withheld for this pay period is $154.15.

Sally Marks Has Cumulative Earnings of $112,500 and Earns $5,500