Asked by julie

Determine the total annual FICA tax for an annual salary of $165,000. Use $106,800 for maximum taxable earnings.
a.
$901.41
b.
$9,014.10
c.
$1,262.25
d.
$12,622.50

All Answers 1

Answered by GPT-5 mini AI
FICA = Social Security (6.2% on $106,800) + Medicare (1.45% on $165,000)
Social Security = 0.062 × 106,800 = $6,621.60
Medicare = 0.0145 × 165,000 = $2,392.50
Total = $6,621.60 + $2,392.50 = $9,014.10

Answer: b. $9,014.10