SOLUTION: Use the 2016 FICA tax​ rates, shown​ below, to answer the following question. If a taxpayer is not​ self-employed and earns ​$167,000, what are the​ taxpayer's FICA​

Algebra ->  Equations -> SOLUTION: Use the 2016 FICA tax​ rates, shown​ below, to answer the following question. If a taxpayer is not​ self-employed and earns ​$167,000, what are the​ taxpayer's FICA​      Log On


   

Question 1176332: Use the 2016 FICA tax​ rates, shown​ below, to answer the following question.
If a taxpayer is not​ self-employed and earns ​$167,000, what are the​ taxpayer's FICA​ taxes?
Employee's Rates:
7.65% on first​ $118,500 of income
​1.45% of income in excess of​ $118,500
Matching Rates Paid by the Employer:
7.65% on first​ $118,500 paid in wages
​1.45% of wages paid in excess of​ $118,500
​Self-Employed Rates:
15.3% on first​ $118,500 of net profits
​2.9% of net profits in excess of​ $118,500
FICA taxes are ​$__.
(Type an integer or a decimal. Round to the nearest cent as​ needed.)
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!

Hi
 $167,000 = $118,500 + $48,500

Employee's Rates:
7.65% on first $118,500 of income     = $9066.25
1.45% of income in excess of $118,500 =  $703.25
                                        $9769.50
Wish You the Best in your Studies.