In each of the following independent situations, calculate the amount of FICA wi

Question

In each of the following independent situations, calculate the amount of FICA withholding from the employee's 2017 salary by the employer.

If required, round your answers to two decimal places. If an amount is zero, enter "0".

The only one I am not understanding is Part C.

Amount of FICA a. Harry earns a $50,000 salary, files a joint return, and claims four withholding allowances. b. Hazel earns a $115,000 salary, files a joint return, and claims four withholding allowances c. Tracy earns a $190,000 salary, files a joint return, and claims four withholding allowances. d. Alicia's 17-year-old son, Carlos, earns $10,000 at the family sole proprietorship. 3,825 8,797.5

Explanation / Answer

Salary of Tracy is $190,000.

Social security tax limit is $127,200 and up to this amount 6.2% is calculated and medicare tax rate=1.45%

So, up to $127,200 (6.2+1.45) 7.65% is to be calculated and on the balance ie., $190,000-$127,200 only medicare tax is to be calculated.

=9730.8+62800*1.45%

=10,641.4 is the FICA.

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