Final answer:
Bianca's Social Security taxes for the year 2023 will be based on the maximum taxable earnings limit for Social Security, resulting in taxes of $8,240 being withheld from her salary.
Step-by-step explanation:
Bianca's Social Security taxes for the year 2023 will be based on the maximum taxable earnings limit for Social Security, resulting in taxes of $8,240 being withheld from her salary.In 2023, Bianca earned a salary of $164,000 from her employer. The Social Security tax rate is 6.2% of an employee's gross income, but only up to the first $132,900 for the year 2023. As Bianca's income is above this threshold, her Social Security taxes will be calculated on the maximum taxable earnings limit rather than her full salary.
To calculate the Social Security taxes withheld: $132,900 (maximum taxable income for Social Security) × 6.2% (Social Security tax rate) = $8,239.80. This amount is rounded to the nearest dollar, so the Social Security taxes withheld from Bianca's salary is $8,240.