The taxpayer's FICA taxes are $ ☐ . (Round to the nearest cent as neede
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 16MC: An employee earns $8,000 in the first pay period. The FICA Social Security Tax rate is 6.2%, and the...
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Transcribed Image Text:Use the 2021 FICA tax rates, shown, to answer the following question.
If a taxpayer is not self-employed and earns $149,000, what are the taxpayer's FICA taxes?
Employee's Rates
Matching Rates Paid by
the Employer
Self-Employed Rates
7.65% on first $142,800 of 7.65% on first $142,800 paid 15.3% on first $142,800 of net
income
in wages
1.45% of income in excess 1.45% of wages paid in
of $142,800
excess of $142,800
profits
2.9% of net profits in excess
of $142,800
+
The taxpayer's FICA taxes are $
(Round to the nearest cent as needed.)
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