Question

Problem 8-65 (LO 8-3) Rasheed works for Company A, earning $399,000 in salary during 2018. Assuming he is single and has no other sources of income, what amount of FICA tax will Rasheed pay for the year? (Round your intermediate calculations to the nearest whole dollar amount.) ( could you please help me to answer this question)

Answer 1

FICA tax which is the "Federal Insurance contributions Act" is the federal law that requires an employer to withhold three types of taxes from the wages that are paid to employess.

1. 6.25 % of Social Security Tax;

2. 1. 45% medicare tax

3. Since 2013, 0.9 % of medicare surtax, when employee earns morethan $ 2,00,000

In the above problem, Rasheed works for Company A and earns $ 3,99,000 as salary during 2018. He has no other sources of income.

Rasheed will not have to pay any FICA Tax, because he is only the employee and not the employer.