Answer:
The amount that I am required to pay monthly as FICA if my salary remains constant is $18,121.85¢
Step-by-step explanation:
Federal insurance contributions act is a law that mandates all employers of labour to withhold medicare and certain taxes from the wages that are paid to employees or workers. These taxes are remitted to the government later which is then used for the provision of basic amenities and quality health care.
Since, I am only required by law to pay FICA on only 92.35% of my monthly salary, we need to calculate the the actual amount that makes up 92.35 percent of my monthly salary.
If $128,255 is my current monthly salary, then 92.35% of it will be:
92.35/100 × 128,255
= 0.9235 × 128,255
= $118,443.49¢
This is the part of his monthly salary that he is required by law to pay FICA on.
Then, if FICA is 15.3% of a worker's taxable income, then I am required to pay 15.3% of the taxable $118,443.49¢ since I am self employed and mustn't pay it on the entire $128,255 that I earn monthly.
My monthly FICA contribution is then:
15.3/100 × 118,443.49
= 0.153 × 118,443.49
= $18,121.85¢.
Therefore, if my salary remains constant, the amount that I am required by law to pay monthly as FICA is $18,121.85
