Question

What is the yearly employee contribution to

the U.S. Social Security tax on a salary of
60,000 $/year ?
A. $870
C. $1740
FICA Taxes
Social Security
12.4%
Medicare
2.9%
employer exployee employer employee
6.2% 1.45% 1.45%
6.2%
B. $3720
D. $7440

Answer 1

Answer: B. $3720

Step-by-step explanation:

$60,000 is under the Social Security wage base of $142,800 therefor employee will contribute 6.2%.

So $60,000*6.2% (or 0.062) =$3,720