Asked by Salli Braswell on Jul 04, 2024

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Angie earned $129,200 during 2017.She is single,claims two withholding allowances,and is paid monthly.How much FICA tax must Angie's employer remit to the federal government in 2017?

A) $19,767.60.
B) $19,519.60.
C) $18,295.80.
D) $19,431.00.

FICA Tax

Federal Insurance Contributions Act tax, a U.S. payroll tax that funds Social Security and Medicare, split between employers and employees.

Withholding Allowances

Portions of an employee's pay that are not included in taxable income, used to reduce the amount of tax withheld from their paycheck.

Federal Government

The national government of a country, which holds the ultimate authority over its territories and is responsible for implementing national policies and laws.

  • Understand how to calculate FICA tax obligations for both employees and employers.
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LC
LaPorsha CaseyJul 10, 2024
Final Answer :
B
Explanation :
To calculate FICA tax, we first need to determine Angie's gross monthly income which is $10,766.67 ($129,200/12). Then we need to calculate her Social Security and Medicare taxes separately.

- Social Security tax = 6.2% of gross income up to $127,200. So for Angie, her Social Security tax for the year would be: 6.2% x $127,200 = $7,886.40
- Medicare tax = 1.45% of all gross income. So for Angie, her Medicare tax for the year would be: 1.45% x $129,200 = $1,874.40

To find out how much FICA tax Angie's employer must remit to the federal government, we add her Social Security and Medicare taxes together: $7,886.40 + $1,874.40 = $9,760.80. Multiply this by 2 since the employer also must pay the same amount, we get $19,521.60. However, because Angie claims 2 withholding allowances, her employer does not have to withhold $4,150 (2 x $4,150) from her gross income. Therefore, the final answer is $19,521.60 - $4,150 = $19,371.60, which is closest to option B ($19,519.60).