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I need to calculate FICA-OASDI using 6.2% on the first $128,400. The Earnings to Date is...

I need to calculate FICA-OASDI using 6.2% on the first $128,400.
The Earnings to Date is $128,500 and the Gross Earnings are $1,790.
I thought you would take (128,500-$128,400) which is $100 and then multiply that by 6.2%??

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Answer #1

If FICA-OASDI is to be calculated using 6.2% on the first $128,400, then it will be calculated as under:

FICA-OASDI = 128,400 x 6.2%

= $7,960.8

= $7,961 (rounded to nearest whole dollar)

If FICA-OASDI is to be calculated using 6.2% on the first $128,400, it means $128,400 is the maximum amount of wages on which an employee is liable to pay FICA-OASDI at 6.2%

Actual earnings of employee will not be considered if it is more than $128,400

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