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.)

2,968.00
4,396.00
6,148.00
9,106.00

Answer 1

So it is 102,000 on FICA tax. and Medicare tax for the individuals is 14% and 2.9% for the Self- employed. and the n= is continuing the Medicare tax. and solution is 102,000x 1.4% = 1,428 individual tax. 102,000 x 2.9%= 2,958 self employed tax. and if you add 1,428+ 2,958 what answer would get by adding those two?

Answer 2

4,396 . thank you ! :)

Answer 3

Yeah that is correct. and no problem. :)