Jeremiah is a fulltime exempt employee who earns an annual s

Jeremiah is a full-time exempt employee who earns an annual salary of $325,000. What is the employer’s annual FICA tax responsibility for Jeremiah’s salary, based on an annual Social Security tax wage base of $127,200?

Solution

Social Security: 6.2% on your first $127,200 of wages 7886.4 [127200*6.2%] Medicare:         1.45% on all your wages 4712.5 [325000*1.45%] Employer Fica Tax Responsibility 12598.9 Answer is D) $12598.90