Use the 2021 FICA tax rates, shown, to answer the following question. If a taxpayer is not self-employed and earns $128,000, what are the taxpayer's FICA taxes? Employee's Rates Matching Rates Paid by the Employer 7.65% on first $142,800 of 7.65% on first $142,800 paid income in wages 1.45% of income in excess of $142,800 1.45% of wages paid in excess of $142,800 Self-Employed Rates 15.3% on first $142,800 of net profits 2.9% of net profits in excess of $142,800 The taxpayer's FICA taxes are $ ☐ . (Round to the nearest cent as needed.)
Use the 2021 FICA tax rates, shown, to answer the following question. If a taxpayer is not self-employed and earns $128,000, what are the taxpayer's FICA taxes? Employee's Rates Matching Rates Paid by the Employer 7.65% on first $142,800 of 7.65% on first $142,800 paid income in wages 1.45% of income in excess of $142,800 1.45% of wages paid in excess of $142,800 Self-Employed Rates 15.3% on first $142,800 of net profits 2.9% of net profits in excess of $142,800 The taxpayer's FICA taxes are $ ☐ . (Round to the nearest cent as needed.)
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 $128,000, 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
profits
in wages
1.45% of income in excess
of $142,800
1.45% of wages paid in
excess of $142,800
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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