Question

Meiling is an employee who wants to find out how much will be deducted from her bi-weekly paycheck for the fica taxes. she earns $2,735 in gross pay each paycheck. calculate the total amount that will be withheld from each for the fica taxes given the tax rate for social security is 6.2% on the first $137,700 of wages, and that the rate for medicare is 1.45% on the first $200,000 of wages.

Answer 1

Meiling's bi-weekly FICA deductions total $209.23, with $169.57 withheld for Social Security and $39.66 for Medicare.

Step-by-step explanation:

Meiling's total FICA tax deduction from her bi-weekly paycheck, based on her gross pay of $2,735, is calculated by summing the contributions for Social Security at a rate of 6.2% and Medicare at a rate of 1.45%. To determine the deductions, these rates are applied to Meiling's gross pay.

For Social Security: $2,735 × 6.2% = $169.57

For Medicare: $2,735 × 1.45% = $39.66

Total FICA deductions: $169.57 (Social Security) + $39.66 (Medicare) = $209.23.

This is the bi-weekly amount that will be withheld from Meiling's paycheck for FICA taxes. Next, calculate the amount withheld for Medicare: the maximum taxable wages for Medicare, which is $200,000. Calculate the Medicare tax withheld by multiplying the annual gross income by the Medicare tax rate: 71110 * 0.0145 = $1,032.10. The total amount that will be withheld from each bi-weekly paycheck for the FICA taxes is $4,407.20 for Social Security and $1,032.10 for Medicare, which adds up to $5,439.30.