SOLUTION: 2016 FICA Tax Rates1 Employee's Rates Matching Rates Paid by the Employer Self-Employed Rates 7.65% on first $118,500 of income 1.45% on income above $118,500 7.65% on first $

Question 1206886: 2016 FICA Tax Rates1
Employee's Rates Matching Rates Paid by
the Employer Self-Employed Rates
7.65% on first $118,500 of income
1.45% on income above $118,500
7.65% on first $118,500 paid in wages
1.45% on wages above $118,500
13.3% on first $118,500 of net earnings
2.9% on earnings above $118,500
1FICA taxes include Social Security and Medicare. The Social Security tax applies to the first $118,500 of income, while the Medicare tax applies to all income.

Suppose Nina has $207,500 of income from work and is not self-employed. How much will Nina have to pay in FICA taxes?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!

FICA taxes include Social Security and Medicare. The Social Security tax applies to the first $118,500 of income, while the Medicare tax applies to all income.

you're paying 6.2% for social security and 1.45% for medicare up to 118,500.
after that, you're paying 1.45% for medicare.

your problem works out to be this:

nina has 207,500 of income from work and she is not self-employed.

she will have to pay 7.65% on first 118,500 of income.
this take into account social security and medicare plus she will have to pay 1.45% on medicare for any income above 118,500.

that becomes .0765 * 118,500 + .0145 * 89,000 = 10,355.75.

you could also look at it as 6.2% for social security up to 118,500 plus 1.45% for medicare with no upper limit.

that becomes .062 * 118,500 + .0145 * 207,500 = 10,355.75.

10,355.75 is your solution.

i looked up 2016 fica on the internet this is what it says.

https://sfcontroller.org/sites/default/files/Documents/payroll/EmploymentTaxWage2016.pdf

you captured it correctly except for employer's rate which was 15.3% instead of 13.3% for employer tax rate for social security.

if you are self-employed, you pay the employee's part plus the employer's part.

RELATED QUESTIONS
2016 FICA Tax Rates1 Employee's Rates Matching Rates Paid by the Employer Self-Employed (answered by Theo)

Use the 2016 FICA tax rates, shown below, to answer the following question. If a (answered by ewatrrr)

Use the 2016 FICA tax rates, shown below, to answer the following question. If a (answered by ikleyn)

Use the 2016 FICA tax rates, shown below, to answer the following question. If... (answered by ikleyn)

Use the 2016 FICA tax rates, shown below, to answer the following question. If... (answered by ewatrrr,ikleyn)

Two certificates of deposit pay interest at rates that differ by 4%. Money invested for... (answered by josmiceli)