The chief executive officer earns $21,400 per month. As of May 31, her gross pay was $107,000. The tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. What is the amount of FICA - Medicare withheld from this employee for the month of June?

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Respuesta :

Answer:

$1,326.8

Explanation:

FICA-Social Security withheld = (First $128,400 - Total Gross Pay) * Rate of Social Security Tax

= ($128,400 - $107,000) * 6.2/100

= $21,400 * 6.2/100  

= $1,326.8

Therefore, the FICA-Social Security tax is $1,326.8