Question

What are the 2019 tax rates for FICA Social Security and FICA Medicare? What are the 2019 maximum taxable earnings amounts for each of these taxes?

a) SS: 6.2%, Medicare: 1.45%; Maximum earnings: No limit
b) SS: 12.4%, Medicare: 2.9%; Maximum earnings: $132,900 (SS), No limit (Medicare)
c) SS: 6.2%, Medicare: 1.45%; Maximum earnings: $132,900 (SS), No limit (Medicare)
d) SS: 12.4%, Medicare: 2.9%; Maximum earnings: No limit

Answer 1

In 2019, the FICA Social Security tax rate was 6.2% for employees, with a maximum taxable earnings limit of $132,900 (option c) . The Medicare tax rate was 1.45% for employees with no maximum taxable earnings limit. The total tax rates including both the employee and employer contributions were 12.4% for Social Security and 2.9% for Medicare.

Step-by-step explanation:

For 2019 tax rates regarding the Federal Insurance Contributions Act (FICA) taxes, which include Social Security and Medicare taxes, the rates were as follows:

• The Social Security tax rate was 6.2% for employees, making a combined total of 12.4% when including the employer's matching contribution.
  
• The Medicare tax rate was 1.45% for employees, resulting in a total of 2.9% along with the employer's contribution.
  

The maximum taxable earnings limit for Social Security in 2019 was set at $132,900. There was no maximum taxable earnings limit for the Medicare tax, meaning all covered wages were subject to Medicare tax, regardless of the amount.

Therefore, the correct option for the 2019 FICA tax rates and maximum taxable earnings amounts is c) SS: 6.2%, Medicare: 1.45%; Maximum earnings: $132,900 (SS), No limit (Medicare).