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.)

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akiran007 akiran007 · Answer 1 · 2020-05-10T04:48:57+02:00

Answer:

Total FICA Tax withheld $ 472.23

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