Question

Carrie had $435 for medicare, $1800 for state income tax, and $1860 for social security deducted from her pay last year. How much did Carrie have deducted from her pay for FICA last year?

1) $2235, because FICA consists of medicare and state income tax
2) $2235, because FICA consists of medicare and social security
3) $2295, because FICA consists of medicare and social security
4) $2295, because FICA consists of medicare and state income tax

Answer 1

FICA consists of Medicare and Social Security taxes. To find Carrie's total FICA deductions, add the Medicare deduction ($435) to the Social Security deduction ($1860) to get $2295. State income tax is not included in FICA.

Step-by-step explanation:

The student is asking about the Federal Insurance Contributions Act (FICA) taxes that were deducted from Carrie's pay. FICA taxes consist of Social Security and Medicare taxes. To calculate Carrie's total FICA deductions for last year, we add her Medicare deduction ($435) to her Social Security deduction ($1860).

Medicare deduction: $435
Social Security deduction: $1860

To find the total FICA deduction, we perform the following calculation: $435 (Medicare) + $1860 (Social Security) = $2295

Therefore, the correct answer is: 3) $2295, because FICA consists of Medicare and Social Security deductions. State income tax is not part of FICA.