Question

What is the maximum amount that an employee can have withheld toward the Social Security portion of FICA in 2018?

Answer 1

Answer:$7,960.80

Explanation:

The Social Security portion of the FICA tax applies to the first $128,400 of gross pay at a rate of 6.2%. Multiply these amounts to determine the maximum amount that a worker can have withheld for the Social Security tax in 2018.

$128,400×0.062=$7,960.80

Therefore, the maximum amount that an employee can have withheld for the Social Security portion of the FICA tax in 2018 is $7,960.80.

Answer 2

SSA Revises Payroll Tax Cap for 2018; Tax Law Alters Rates and Brackets. Starting Jan. 1, 2019, the maximum earnings that will be subject to the Social Security payroll tax will increase by $4,500 to $132,900—up from the $128,400 maximum for 2018, the Social Security Administration announced Oct. 11, 2018.

I hope it helps a little bit.