Mary Reeves has gross wages of $1,500 for the week ending October 24. Mary's total accumulated gross wages earned this year, prior to this payroll, is $75,000. If the FICA rates are: Social Security: 6.2% on a limit of $113,700 and Medicare 1.45%. What are Mary's FICA-Social Security and FICA-Medicare taxes for the week?

Question

Quizplus · Accepted Answer

To calculate FICA-Social Security taxes for the week, we first need to determine whether Mary has reached the wage base limit of $113,700. Since Mary's accumulated gross wages for the year prior to this payroll is $75,000, she has not reached the wage base limit. Therefore, her FICA-Social Security tax for the week is:
$1,500 x 6.2% = $93.00
To calculate FICA-Medicare taxes for the week, we simply multiply Mary's gross wages by the Medicare tax rate:
$1,500 x 1.45% = $21.75 
Therefore, Mary's FICA-Social Security tax for the week is $93.00, and her FICA-Medicare tax for the week is $21.75. The correct answer is C.

Mary Reeves Has Gross Wages of $1,500 for the Week