Question

Assume James Kolen, an employee of Smart Touch Learning, earned $ 113000 prior to December. His December salary is $ 16000. Assuming the OASDI tax rate is 6.2%, the maximum income limit on OASDI is $118,500, and the Medicare tax rate is 1.45%, what will be his total FICA tax withheld for December?

Answer 1

To calculate the total FICA tax withheld for December for James Kolen, we multiply his December salary by the OASDI tax rate, and then separately calculate the Medicare tax by multiplying his December salary by the Medicare tax rate. We add the two amounts together to find the total FICA tax withheld.

Step-by-step explanation:

To calculate the total FICA tax withheld for December, we need to calculate the OASDI tax and Medicare tax separately.

First, let's calculate the OASDI tax. The OASDI tax rate is 6.2%, so we need to multiply James Kolen's December salary ($16,000) by 6.2% to find the OASDI tax amount:

$16,000 x 0.062 = $992

Next, let's calculate the Medicare tax. The Medicare tax rate is 1.45%, so we need to multiply James Kolen's December salary ($16,000) by 1.45% to find the Medicare tax amount:

$16,000 x 0.0145 = $232

Finally, we can calculate the total FICA tax withheld for December by adding the OASDI tax amount ($992) and the Medicare tax amount ($232):

$992 + $232 = $1,224