Rasheed works for Company A, earning $357,000 in salary during 2015. Assuming he has no other sources of income, what amount of FICA tax will Rasheed pay for the year?
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Question & Answer: Rasheed works for Company A, earning $357,000 in salary during 2015. Ass…..
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For 2015, Rasheed will pay 6.2% of Social Security taxes on the first $118,500 of his salary, and he will pay 1.45% of Medicare taxes on his first $200,000 of salary and 2.35% of Medicare taxes on the remaining $157,000 of salary. In total, Rasheed will pay $7,347 of Social Security taxes (6.2% x $118,500) and $6,589.5 of Medicare taxes for the year ($200,000 x 1.45% + $157,000 x 2.35%) for a total of $13,936.5 in FICA taxes.