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In 2020, Bianca earned a salary of $159,000 from her employer
In 2020, Bianca earned a salary of $159,000 from her employer. Round your answer to whole dollar amount, if necessary. How much in FICA Social Security taxes and Medicare taxes will be withheld from Bianca’s salary? Social Security: $fill in the blank 1 Medicare: $fill in the blank 2
Expert Solution
2020 FICA tax rate
Medicare tax rate = 2.9 %
Social security tax = 12.4% whether 6.2% paid by both employer and employee
Bianca earned salary = $159,000
Medicare tax withheld = $159,000*2.9/100 = $4,611
Social security tax
Calculation of social security tax is little confusing.
Social security tax is imposed on basis of a wage limit. In 2020 it is $137,700. If an employee earn more than $137,700 salary, then the social security tax is imposed only on the first $137,700 of salary
Social security tax = $137,700*6.2/100 = $8,532
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