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Suppose a graphic designer earns $40,000 and is not self-employed. How much will the designer have to pay in FICA taxes? 2016 FICA Tax Rates1
Suppose a graphic designer earns $40,000 and is not self-employed. How much will the designer have to pay in FICA taxes?
2016 FICA Tax Rates1 Matching Rates Paid by the Employer Employee's Rates 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 -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. Suppose a graphic designer earns $40,000 and is not self-employed. How much will the designer have to pay in FICA taxesStep by Step Solution
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