Question

Franklin made $165,000 for the tax year
2017. How much did he pay in FICA taxes ?

Answer 1

Answer: $‭10,278.9‬0

Explanation:

FICA taxes comprise of both the Social Security tax and the Medicare tax rate which in 2017 were 6.2% and 1.45% of income respectively.

The Social security portion is subject to a limit of $127,200 in income but there is no limit for the Medicare tax.

Franklin FICA = (127,200 * 6.2%) + (165,000 * 1.45%)

= ‭7,886.4‬0 + ‭2,392.5‬0

= $‭10,278.9‬0