Asked by
Arîvølèé Nêhrû
on Nov 15, 2024Verified
Jim Barnes' cumulative earnings are $103,000, and his gross pay for the week is $6,400. If the FICA rates are: OASDI 6.2% on a limit of $128,400 and Medicare is 1.45%, what are his FICA-OASDI and FICA-Medicare taxes for the week? (Round your answers to the nearest whole dollar.)
A) $0; $93
B) $0; $0
C) $397; $93
D) $397; $0
FICA-OASDI
Federal Insurance Contributions Act - Old Age, Survivors, and Disability Insurance, a U.S. payroll tax that funds Social Security and is shared between employers and employees.
Cumulative Earnings
The total amount of money earned by an employee since the start of employment or over a specific accounting period before deductions.
- Calculate the obligations towards FICA-OASDI and Medicare based on designated rates and maximum income levels.
Verified Answer
GS
Learning Objectives
- Calculate the obligations towards FICA-OASDI and Medicare based on designated rates and maximum income levels.