Final answer:
To calculate an employee's FICA taxes, use 6.2% of gross income for Social Security and 1.45% for Medicare. The total FICA taxes for a weekly income of $4,000 comes to $306, with Social Security tax being $248 and Medicare tax $58.
Step-by-step explanation:
The student's question pertains to calculating FICA taxes, which are composed of Social Security and Medicare taxes, for an employee with a specific income. First, we need to calculate the gross weekly income, before any deductions:
- Gross weekly income: $4,000
Next, to calculate the FICA taxes, we apply the following percentages to the gross income:
- Social Security tax is 6.2% of the gross income.
- Medicare tax is 1.45% of the gross income.
The FICA tax calculations will be:
- Social Security tax = 6.2% of $4,000 = 0.062 * $4,000 = $248
- Medicare tax = 1.45% of $4,000 = 0.0145 * $4,000 = $58
Therefore, the total FICA taxes for the period are:
- Total FICA tax = Social Security tax + Medicare tax = $248 + $58 = $306
Note: The deductions for the 401(k) plan and United Way do not affect the calculation of FICA taxes as they are calculated based on the gross income.