Question

Brooke, a single taxpayer, works for Company A for all of 2019, earning a salary of $62,000. a. What is her FICA tax obligation for the year? b. Assume Brooke works for Company A for half of 2019, earning $62,000 in salary, and she works for Company B for the second half of 2019, earning $102,000 in salary. What is Brooke's FICA tax obligation for the year? (Round your intermediate calculations to the nearest whole dollar amount.) Kyle, a single taxpayer, worked as a free-lance software engineer for the first three months of 2019. During that time, he earned $90,000 of self-employment income. On April 1, 2019, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Inc. From April through the end of the year, Kyle earned $198,000 in salary. What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year? EXHIBIT 8-8 Child Tax Credit Phase-Out Threshold Filing Status Phase-Out Threshold Married filing jointly $400,000 Married filing separately 200,000 Head of household and single 200,000

Answer 1

Dear Student,

As per the HOMEWORKLIB POLICY, only the first question should be answered. kindly take note of it. each new question should be posted separately

Part A

FICA tax = $4743

Because Brooke's salary is below the $132900 Social Security wage base limit for 2019, she pays FICA taxes of 7.65% on her entire $62,000 ($62,000 × 7.65% = $4743).

Part B

FICA Tax = $10618

Brook’s total salary = 62000+102000 = $164000

Brooke's salary is above the $132900 Social Security wage base limit for 2019, she pays social security tax of 6.20% on $132900 and Medicare tax of 1.45% on $164000

FICA Tax = (132900*6.2%)+(164000*1.45%) = $10617.80 = $10618