Question

1.In each of the following independent situations, calculate the amount of FICA withholding from the employee's 2018 salary by the employer.

If required, round your answers to nearest dollar. If an amount is zero, enter "0".

		Amount of FICA
a.	Harry earns a $50,000 salary, files a joint return, and claims four withholding allowances.	$
b.	Hazel earns a $115,000 salary, files a joint return, and claims three withholding allowances.	$
c.	Tracy earns a $190,000 salary, files a joint return, and claims six withholding allowances.	$
d.	Alicia's 17-year-old son, Carlos, earns $10,000 at the family sole proprietorship.	$

Answer 1

Part A

FICA taxes = (taxable income*social security tax)+(taxable income * medicare tax)

FICA taxes = (50000*6.20%)+(50000*1.45%) = $3825

Part B

FICA taxes = (taxable income*social security tax)+(taxable income * medicare tax)

FICA taxes = (115000*6.20%)+(115000*1.45%) = $8798

Part C

FICA taxes = (taxable income*social security tax)+(taxable income * medicare tax)

FICA taxes = (128400*6.20%)+(190000*1.45%) = $10716

Part D

FICA taxes = $0 (as being below 18 years of age, he is exempted form FICA withholding. Moreover he works for his parent in a trade or business that is a sole proprietorship.)