Question

Rasheed works for Company A, earning $299,000 in salary during 2019. Assuming he is single and has no other sources of income, what amount of FICA tax will Rasheed pay for the year

Answer 1

$13,466

Step-by-step explanation:

For 2019, the wage limit for Social Security tax is $132900

Thus;

Social Security tax $132,900x 6.2% = $8,239.80

Medicare tax = $299,000 x 1.45% = $4335.50

Additional Medicare Tax ($299,000 - $200000) x 0.9% = $891

therefore,

Amount of FICA Tax = $8239.80 + $4335.50 + $891 = $13,466.30 which is approximately $13,466