Determine the total annual fica tax for an annual salary of $165,000. use $106,800 for maximum taxable earnings.

FICA Tax =$8170.2

Step-by-step explanation:

Given

Total income=$165000

Taxable income=$106800

FICA tax includes Social security tax and medicare tax.  

Medicare tax is 1.45% of the taxable wage and social security tax is6.2% of the taxable wage.  

1.45% of medicare is paid by the employer and similarly 6.2% social security tax is paid by the employer.

0.9% of medical surtax is deducted if the employee earns more than $200000

So,

Medicare  Tax=Taxable income*1.45/100

=106800*0.0145

=$1548.6  

Social Security Tax=Taxable Income*6.2/100

=106800*0.062

=$6621.6

As the income of the employee is less than $200000, so there will be no medical surtax.  

Total FICA tax=$1548.6+$6621.6

=$8170.2

M Step-by-step explanation: