Question

An employee has​ year-to-date earnings of $ 114 comma 400. The​ employee's gross pay for the next pay period is $ 4 comma 800. If the FICAlong dashOASDI is 6.2​% and the wage base is $ 118 comma 500​, how much FICAlong dashOASDI tax will be withheld from the​ employee's pay?​ (Answer is rounded to whole​ dollar.)

Answer 1

Answer:

$254

Explanation:

First we must calculate the employee's remaining taxable portion = wage base - year to date earnings = $118,500 - $114,400 = $4,100

Then we multiply the employee's remaining taxable portion times FICA-OASDI tax rate = $4,100 x 6.2% = $254.20, we round down to the nearest dollar = $254