Question

Your total FICA contribution which includes Social Security and Medicare is 15.3% of your salary. 12.4% of your FICA contribution is for Social Security. Your annual income is $67,525. What will be the total deduction be for you and your employer for Medicare?

Answer 1

Answer:

$1,958.23

Step-by-step explanation:

Annual income = $67,525

Total FCIA = 15.3% of salary

Since my annual income is $67,525 the FCIA contribution = 15.3%.

But 12.4% is for Social Security.

The remaining 2.9%(15.3% - 12.4%) will be for Medicare taxes.

The total deduction for I and my employer for medicare taxes will be:

2.9% * $67,525

= $1,958.225

The total deduction for medicare would be: $1,958.23

Note: Assuming we were asked to calculate only employee's medicare, the deduction would be 50% of $1,958.23.