Question

Use the 2016 FICA tax rates, shown below, to answer the following questionIf a taxpayer is not self-employed and earns $127,000, what are the taxpayer's FICA taxes?Employee's Rates7.65% on first $118,500 ofincomeMatching Rates Paid bythe EmployerSelf-Employed Rates7.65% on first $118,500 paid 15.3% on first $118,500 of netin wagesprofits1.45% of income in excessof S118,5001.45% of wages paid inexcess of $118,5002.9% of net profits in excessof $118.500FICA taxes are $(Type an integer or a decimal. Round to the nearest cent as needed.)

Answer 1

7.65% * 118,500 = 9065.25

9065.25 * 2 = 18130.50

127,000 - 118,500 = 8500

8500 * 1.45% = 123.25

123.25 * 2 = 246.50

18130.50 + 246.50 = 18377