Question

Rasheed works for Company A, eaming $385,000 in salary during 2022 Assuming he is single and has no other sources of income; what amount of FICA tax will Rasheed pay for the year?

Answer 1

Rasheed will pay a total of $29,452.50 for FICA tax for the year.

Step-by-step explanation:

To calculate the FICA tax that Rasheed will pay for the year, we need to first determine the Social Security and Medicare taxes based on his salary. 1. Social Security tax rate is 6.2% of the gross income. So, the Social Security tax amount is $385,000 x 0.062 = $23,870. 2. Medicare tax rate is 1.45% of the gross income. So, the Medicare tax amount is $385,000 x 0.0145 = $5,582.50. Therefore, the total FICA tax that Rasheed will pay for the year is $23,870 (Social Security tax) + $5,582.50 (Medicare tax) = $29,452.50.