Question

Asteria earned a $25,500 salary as an employee in 2018. How much should her employer have withheld from her paycheck for FICA taxes?

Answer 1

Answer:

The correct answer for the following question is $1951.

Explanation:

FICA is know as Federal insurance contribution act, which is a federal law, that requires employer to withhold three distinct taxes from the wages of the employee. They're  -

1) A social security tax which is 6.2%

2) Medicare tax which is 1.45%

3) Medicare surface tax of .9%, which is to be paid by a person who has income over $200,000

As the Asteria income is $25,500, she will not pay the last medicare surface tax, but she will pay both social security tax and medicare tax.

Social security tax = $25,500 x 6.2%

= $1581

Medicare tax = $25,500 x 1.45%

= $370

So the total amount withheld from her - $1581 + $370

= $1951