Question

Required information Skip to question [The following information applies to the questions displayed below.] Eva received $60,000 in compensation payments from JAZZ Corp. during 2020. Eva incurred $5,000 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,400. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference. (Leave no answer blank. Enter zero if applicable.) a. Assume that Eva is considered to be an employee. What amount of FICA taxes is she required to pay for the year

Answer 1

Answer:

$4,590

Explanation:

Calculation to determine What amount of FICA taxes is she required to pay for the year

Using this formula

FICA taxes =FICA taxes rates *Compensation payments received

Let plug in the formula

FICA taxes = $60,000 × 7.65%

FICA taxes = $4,590

Therefore amount of FICA taxes she is required to pay for the year will be $4,590 reason been that her salary is lower than the Social Security wage base limit for the year 2018 of the amount of $128,400 which is the why she pays FICA taxes rate of 7.65% on the entire amount of $60,000.