Question

Dave Brown's cumulative earnings are $90,000, and his gross pay for the week is $6,700. If the FICA rates are: OASDI 6.2% on a limit of $128,400 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week

Answer 1

Answer:

Dave Brown's FICA-OASDI tax for the week is $415.40; and his FICA-Medicare tax for the week is $97.15.

Explanation:

The following are given in the question:

Cumulative earnings = $90,000

Gross pay for the week = $6,700

FICA-OASDI tax rate = 6.2%

FICA-Medicare tax rate = 1.45%

Therefore, we have:

FICA-OASDI tax for the week = Gross pay for the week * FICA-OASDI tax rate = $6,700 * 6.2% = $415.40

FICA-Medicare tax for the week  = Gross pay for the week * FICA-Medicare tax rate = $6,700 * 1.45% = $97.15

Therefore, Dave Brown's FICA-OASDI tax for the week is $415.40; and his FICA-Medicare tax for the week is $97.15.

Note:

The full meaning of FICA is Federal Insurance Contributions Act, and the full meaning of OASDI is Old Age Survivor and Disability Insurance.