Janice Tax, an accountant for Flee Corp., earned $102,700 from January to June. In July she earned $8,000. Assuming a FICA tax r
ate of 6.2% for Social Security on $118,500 and 1.45% for Medicare, (A) how much of this month's earnings are taxed for Social Security and Medicare? and (B) what is the amount of FICA tax for Social Security and Medicare?
The Federal Insurance Contributions Act (FICA) is made up of
two items, Social Security and Medicare taxes. For 2016, the Social Security
tax rate is 6.2% on the first $118,500 wages paid. The Medicare tax rate is
1.45% on the first $200,000 and 2.35% above $200,000. Since the total earnings is
only $110,700 which is not yet taxable. So there is no taxable earnings yet.
Step-by-step explanation: As you can see in the table, if you divide the number of fans present at a football game by the number of students, you would always get 7. So, 7:49 is a choice because if you divide 49 by 7, you get 7. Hope this helps!!
