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In 2020, Krystal earned $84,750

A. What was her monthly gross pay?
B. How much Social Security tax did she pay
each month?
C. How much Medicare tax did she pay each
month?
D. How much does she pay monthly in FICA
toxes?

1 Answer

3 votes

Final answer:

Krystal's monthly gross pay is $7,062.50. She pays $438.68 in Social Security taxes each month, $102.47 in Medicare taxes each month, and $541.15 in FICA taxes each month.

Step-by-step explanation:

A. To find Krystal's monthly gross pay, we divide her annual salary by 12 (the number of months in a year):

Gross monthly pay = $84,750 / 12 = $7,062.50

B. Social Security tax is 6.2% of the gross pay. To calculate the monthly Social Security tax:

Monthly Social Security tax = Gross monthly pay × 6.2% = $7,062.50 × 0.062 = $438.68

C. Medicare tax is 1.45% of the gross pay. To calculate the monthly Medicare tax:

Monthly Medicare tax = Gross monthly pay × 1.45% = $7,062.50 × 0.0145 = $102.47

D. FICA taxes include both Social Security and Medicare taxes. To calculate the monthly FICA taxes:

Monthly FICA taxes = Monthly Social Security tax + Monthly Medicare tax = $438.68 + $102.47 = $541.15

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