Question

3 What is the combined amount (in percent) of the employee and the employer FICA tax rate? What percent does a self-employed person pay for FICA? WHY?? What percentage more does an employee earning over $200,000 pay for MC? Use 2020 rates! FICA-SS FICA-MC → employee → self-employed person employee earning over $200,000 per year 4 Kandy has already earned $136,000 this calendar year. This pay period she earned $2,800. How much of the $2,800 is taxed for %% Tax $$ withheld → Social Security (OASDI)? 0.00 → Medicare (MC)? 0.00 $$

Help with 3 and 4 please

Answer 1

3.

	FICA-SS	FICA-MC
Employee	6.2% of Employee + 6.2% of Employer = 12.4% combined	1.45% of Employee + 1.45% of Employer = 2.9% combined
Self-Employed Person	12.4% on first $137,700	2.9%
	15.3% is the combined tax rate of FICA applicable on self-employed person. It is imposed to secure the retirement, dissability of the self-employed person and to help with the cash crunches at the time of medical emergency.
Employee earning over $200,000 per year	-	0.9%

4.

	$$	%	Tax $$ withheld
Social Security (OASDI)	$137,700-$136,000 =$1700	6.2%	$105.4
Medicare(MC)	$2,800	1.45%	$40.6