Mary Reeves has gross wages of $3,000 for the week ending October 30. Mary's total accumulated gross wages earned this year, prior to this payroll, is $114,150. 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

Mary has already exceeded the Social Security wage base limit of $113,700, so her FICA-Social Security tax is $0. However, Medicare has no wage base limit, so her FICA-Medicare tax is 1.45% of $3,000, which is $43.50.

Mary Reeves Has Gross Wages of $3,000 for the Week