Question

​Tim's gross pay for this month is $ 9 comma 050. His gross yearminustominusdate ​pay, prior to this​ month, totaled $ 113 comma 000. What is the amount of FICA tax withheld from​ Tim's pay for this​ month? (Assume an OASDI rate of 6.2​%, applicable on the first​ $118,500 earnings, and a Medicare rate of 1.45​%, applicable on all earnings. Do not round any intermediate​ calculations, and round your final answer to the nearest​ cent.)

Answer 1

Total FICA Tax withheld $ 472.23

Step-by-step explanation:

FICA Tax is comprised of OASDI rate of 6.2​%, and a Medicare rate of 1.45​%.

Given

Taxable Earnings $118,500

Earned Pay $ 113, 000

Calculated Data

Current Taxable Income $ 5,500 ( $118,500- $ 113, 000)

OASDI rate of 6.2​%, is applicable on $ 5,500

A Medicare rate of 1.45​%, is applicable on gross pay $ 9,050

Working

OASDI Tax= 6.2 % of $ 5,500= $ 341

Medicare tax = 1.45% of $ 9,050= $ 131.225= $ 131.23

Total FICA Tax withheld = $ 341+$ 131.23=$ 472.23