Question

An employee has year-to-date earnings of $ 115 comma 400. The employee's gross pay for the next pay period is $ 5 comma 000. If the FICAlong dashOASDI is 6.2% and the wage base is $ 118 comma 500, how much FICA--OASDI tax will be withheld from the employee's pay? (Answer is rounded to whole dollar.)

A. $ 192
B. $ 210
C. $ 310
D. $ 73

Answer 1

To calculate the FICA-OASDI tax withheld from the employee's pay, find the employee's annual income, subtract the wage base, and multiply by the FICA-OASDI rate. The FICA-OASDI tax withheld is $118.

Step-by-step explanation:

To calculate the FICA-OASDI tax withheld from the employee's pay, we need to find the employee's annual income, subtract the wage base, and then multiply by the FICA-OASDI rate. First, let's calculate the employee's annual income:

Year-to-date earnings = $115,400

Gross pay for next pay period = $5,000

Total annual income = Year-to-date earnings + Gross pay

Total annual income = $115,400 + $5,000 = $120,400

Next, let's calculate the amount subject to FICA-OASDI tax:

Amount subject to FICA-OASDI tax = Total annual income - Wage base

Amount subject to FICA-OASDI tax = $120,400 - $118,500 = $1,900

Finally, let's calculate the FICA-OASDI tax:

FICA-OASDI tax = Amount subject to FICA-OASDI tax * FICA-OASDI rate

FICA-OASDI tax = $1,900 * 6.2%

FICA-OASDI tax = $1,900 * 0.062

FICA-OASDI tax = $117.80

Rounded to the nearest whole dollar, the FICA-OASDI tax withheld from the employee's pay is $118.