Question

The limit in 2008 for FICA tax was 102,000. So if an individual makes $314,000 in one year, how much in \"continuing\" medicare tax will they have to pay? (Medicare tax is 1.4% for individuals and 2.9% for the self-employed.). A. 2,968.00. B. 4,396.00. C. 6,148.00. D. 9,106.00

Answer 1

The total amount of "continuing" Medicare tax the individual would have to pay is $4,396.

Step-by-step explanation:

First, we need to calculate the amount of FICA tax the individual would pay on the limit of $102,000. The FICA tax rate for individuals is 1.4%, so the tax amount would be $102,000 * 1.4% = $1,428.

Next, we need to calculate the amount of FICA tax the individual would pay on the remaining earnings. The FICA tax rate for individuals is still 1.4%, so the tax amount would be ($314,000 - $102,000) * 1.4% = $2,968.

Therefore, the total amount of "continuing" Medicare tax the individual would have to pay is $1,428 + $2,968 = $4,396.

Answer 2

102,000 FICA taxMedicare tax individuals is 1.4% and 2.9% self-employedn = continuing medicare taxSolution: 102,000 x 1.4%= 1,428 individual tax 102,000 x 2.9% = 2,958 self-employed tax 1,428 + 2,958 = n continuing medicare taxAnswer: n = $4,386 continuing medicare tax

Step-by-step explanation: