Problema Solution
Felicia is a manager at the All You Can Eat Buffet. She earns $38,550 annually. If she pays 6.2% of her annual income toward Social Security and 1.45% of her income toward Medicare, how much will she pay in FICA tax in one year?
Answer provided by our tutors
Social Security and Medicare taxes make up FICA tax.
FICA tax = Social Security + Medicare
Social Security = 0.062*$38,550
Social Security = $2,390.1
Medicare = 0.0145*$38,550
Medicare = $558.975
FICA tax = $2,390.1 + $558.975
FICA tax = $2,949.08