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Lana71 [14]
4 years ago
14

Determine the total annual FICA tax for an annual salary of $110,330. Use $106,800 for maximum taxable earnings

Mathematics
1 answer:
Goryan [66]4 years ago
5 0

Step-by-step explanation:

The Federal Insurance Contribution Act (FICA) allows companies to pay a certain amount of the employee's wages as insurance.

The types are: 6.2 per cent as a social security tax of 1.45 per cent as a Medicare tax of 0.9 per cent as a Medicare surcharge on employers making greater than $200,000.

In this case, the percentage of tax applied will be 6.2 + 1.45 = 7.65%

The FICA tax will be 110,330 * 0.0765 FICA tax = $8,440.24

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5 weeks

Step-by-step explanation:

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