Question

1. Rob earned $62,000 in 2018. Calculate his FICA contribution for the year. How much did his employer pay toward FICA?
2. Michael was 33 and had two dependent children, ages 4 and 6, who are cared for by their mother when he died this year. He had accumulated 20 credits of coverage under Social Security at the time of his death. To what benefits are his survivors entitled under Social Security?
3. In 2018, James earned $5,000 from employment subject to Social Security between January 1 and March 31. He was then unemployed for the remainder of the year. How many credits of coverage did he earn for Social Security for2018?

Answer 1

Answer to Question 1:

The total earnings are $62,000 (assuming the FICA tax is not included in this figure).

FICA contribution by Rob is 6.2% of total earnings = 62,000 * 6.2% = $3,844

FICA contribution including tax by Employer is 7.65% of total earnings = 62,000 * 7.65% = $4,743

Answer to Question 2:

Under the special rule, survivors will receive Survivors benefit even the credits are less. In the current instance, Michael's children and his spouse are entitled to the Survivors benefit.

Answer to Question 3:

One credit is earned for every $1,320 earned. Only 3 credits will be received in the year 2018.