Question

Elias received a W-2 showing total compensations of $36,038. What is the amount of FICA tax he paid for the year?

A) $522.55
B) $2,756.91
C) $2,234.36
D) $27,569.07

Answer 1

FICA or Federal Insurance Contributions Act is composed of social security tax and medicare tax. Hence, we need to add these taxes to get the FICA tax.Social Security Tax is = 6.2%Medicare Tax is = 1.45%
Social Security Tax = 36,038*.062 = 2,234.356 Medicare Tax = 36,038*.0145 = 522.552
2,234.356 + 522.552 = 2,756.907 or 2,756.91
Therefore, Elias paid B.) 2,756.91 as FICA tax for the year.