Mary Reeves has gross wages of $2,500 for the week ending October 30. Mary's total accumulated gross wages earned this year, prior to this payroll, is $111,900. 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 find Mary's FICA-Social Security taxes, we need to multiply her gross wages by the Social Security rate of 6.2% up until the limit of $113,700. Since Mary has only earned $111,900 in accumulated gross wages so far this year, we can calculate her FICA-Social Security tax as follows:

FICA-Social Security = (2,500 x 6.2%) = $155.00

To find Mary's FICA-Medicare taxes, we need to multiply her gross wages by the Medicare rate of 1.45%. This calculation is not subject to a wage limit. Therefore, we can calculate Mary's FICA-Medicare tax as follows:

FICA-Medicare = (2,500 x 1.45%) = $36.25

Therefore, the correct answer is D) $111.60; $36.25.

Mary Reeves Has Gross Wages of $2,500 for the Week