In 2020, Bianca earned a salary of $154,200 from her employer

Accounting Nov 30, 2020

In 2020, Bianca earned a salary of $154,200 from her employer. Round your answer to whole dollar amount, if necessary. Determine the amount of FICA Social Security taxes and Medicare taxes withheld from her salary. Social Security: $ ? Medicare: $ ?

Expert Solution

For year 2020,The maximum earnings subject to social security tax is 137700 at a rate of 6.2% .There is no limit for FICA-medicare tax and a tax rate is equals to 1.45%.

	Maximum Limit	Amount of Taxes
Social security	137700	137700*6.2%= 8537.4 (rounded to 8537)
Medicare	No limit	154200*1.45%= 2235.9 (rounded to 2236)

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