Answer:
FICA Tax =$8170.2
Explanation:
Given
Total income=$165000
Taxable income=$106800
FICA tax includes Social security tax and medicare tax.
Medicare tax is 1.45% of the taxable wage and social security tax is6.2% of the taxable wage.
1.45% of medicare is paid by the employer and similarly 6.2% social security tax is paid by the employer.
0.9% of medical surtax is deducted if the employee earns more than $200000
So,
Medicare Tax=Taxable income*1.45/100
=106800*0.0145
=$1548.6
Social Security Tax=Taxable Income*6.2/100
=106800*0.062
=$6621.6
As the income of the employee is less than $200000, so there will be no medical surtax.
Total FICA tax=$1548.6+$6621.6
=$8170.2