Thinking Mathematically (6th Edition)

Published by Pearson
ISBN 10: 0321867327
ISBN 13: 978-0-32186-732-2

Chapter 8 - Personal Finance - Chapter 8 Test - Page 572: 5

Answer

$6795

Work Step by Step

FICA stands for Federal Insurance Contributions Act, FICA taxed are paid by a person in addition to the income tax. This amount is used by the government for social security and medical benefits. Calculate FICA taxes as mentioned below: \[\begin{align} & \text{FICA }\text{tax}=\left( \$110,000\times.0565\right)+\left(\$40,000\times0.0145\right)\\&=\$6,215+\$580\\&=\$6,795\end{align}\] Hence,FICA tax owed by a not self-employed person is\[\$6,795\].
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