In 2005,Lee began working as a nurse anesthetist with a taxable income of $119,000.The Medicare tax was 1.45% and the Social Security tax rate was 6.2% to the maximum income of $90,000 that year.How much did Lee pay in FICA taxes in 2005?

A) $9,103.50
B) $7,305.50
C) $5,580.00
D) $1,725.50

Question

Yevheniia Sikiryna · Accepted Answer

Final Answer : B, Explanation :  Lee's taxable income above the maximum Social Security limit is $119,000 - $90,000 = $29,000.The Medicare tax is 1.45% of Lee's entire taxable income:$119,000 x 0.0145 = $1,725.50The Social Security tax is 6.2% of Lee's income up to the maximum limit and does not apply to anything above that limit:$90,000 x 0.062 = $5,580Therefore, Lee paid a total of $1,725.50 + $5,580 = $7,305.50 in FICA taxes.

In 2005,Lee began working as a nurse anesthetist with a taxable income of $119,000.The Medicare tax was 1.45% and the Social Security tax rate was 6.2% to the maximum income of $90,000 that year.How much did Lee pay in FICA taxes in 2005?

A) $9,103.50
B) $7,305.50
C) $5,580.00
D) $1,725.50

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Learning Objectives

Related questions

In 2005,Lee began working as a nurse anesthetist with a taxable income of $119,000.The Medicare tax was 1.45% and the Social Security tax rate was 6.2% to the maximum income of $90,000 that year.How much did Lee pay in FICA taxes in 2005?A) $9,103.50B) $7,305.50C) $5,580.00D) $1,725.50

Definitions

Learning Objectives

Learning Objectives

Related questions

In 2005,Lee began working as a nurse anesthetist with a taxable income of $119,000.The Medicare tax was 1.45% and the Social Security tax rate was 6.2% to the maximum income of $90,000 that year.How much did Lee pay in FICA taxes in 2005?

A) $9,103.50
B) $7,305.50
C) $5,580.00
D) $1,725.50