Question

Ed had a gross income of $3255.29 during each pay period in 2010. If he got paid monthly, how much of his pay was deducted for FICA in 2010?

Answer 1

Answer: The answer is $2988.36. (Financial Literacy)

Explanation:

Answer 2

A FICA (Federal Insurance Contributions Act) obligates the citizens to pay 6.2% for Social Security and 1.45% for Medicare tax. Given that Ed had a monthly gross income of $3255.29, his yearly gross income is $39,063.48. The total tax deducted from his income is 7.65%. This is equivalent to $2988.36.