The limit in 2008 for FICA tax was 102,000. So if an individual makes $314,000 in one year, how much in "continuing" medicare tax will they have to pay? (Medicare tax is 1.4% for individuals and 2.9% for the self-employed.)

A. 2,968.00
B. 4,396.00
C. 6,148.00
D. 9,106.00

Question

The limit in 2008 for FICA tax was 102,000. So if an individual makes $314,000 in one year, how much in "continuing" medicare tax will they have to pay? (Medicare tax is 1.4% for individuals and 2.9% for the self-employed.)

A. 2,968.00
B. 4,396.00
C. 6,148.00
D. 9,106.00

anonymous · Answer

Are you in accounting classes?  That is my major :)

anonymous · Answer

lol its consumer math but idk

anonymous · Answer

basically this is telling you the cap for the year on FICA is 102K  This cap is with both social security and medicare...

after the 102K is met you still must pay medicare %  only.

so how much more money is there over the 102K cap...

multiply that by 1.4%

anonymous · Answer

it gave me 145.656 but thats not one of the answeres...

anonymous · Answer

314000-102000 = 212000
212000 * 1.4% = 2968

anonymous · Answer

oh ok thank you agian i have a lot more like this one if you wanna help me with theses

anonymous · Answer

Post new questions separately...either myself or another person will definitely help you out...

anonymous · Answer

ok thank you