Answer:
Several interpretations:
1. If you're simply looking for the math involved in the employee's portion of the $8,800: 6.2% +1.45% = 7.65%. So 7.65% of $8,800 = $673.20.
2. If you are trying to calculate total FICA for this pay period, it would be 12.4% + 2.9% since these amounts are split between the employer and employee (15.3% = $1,346.40).
3. If you are trying to calculate the total for this pay period given that their YTD earnings are $417,900 (lucky employee!), they do not owe anything (see explanation below).
Step-by-step explanation:
The OASDI program limits the amount of earnings that are subject to taxation in a given year. For 2022, the contribution and benefit base, otherwise known as the taxable maximum, is $147,000. <u><em>The taxable max for 2018 was $128,400)</em></u><u>. </u>
Assuming this employee has exceeded that amount as their current YTD income is $417,900 (409,100 + 8,800), they don't owe anything.
Quick Edit:
My apologies! An additional 0.9% Medicare tax is added for taxable income exceeding $200,000 depending on their filing status. Table is available at https://fitsmallbusiness.com/
