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Use the 2016 FICA tax rates, shown below, to answer the following question. If a taxpayer is not self-employed and earns $132,000, what are the
Use the 2016 FICA tax rates, shown below, to answer the following question.
If a taxpayer is not self-employed and earns
$132,000,
what are the taxpayer's FICA taxes?
Employee's Rates | Matching Rates Paid by the Employer | Self-Employed Rates | ||
---|---|---|---|---|
7.65% on first $118,500 of income 1.45% of income in excess of $118,500 | 7.65% on first $118,500 paid in wages 1.45% of wages paid in excess of $118,500 | 15.3% on first $118,500 of net profits 2.9% of net profits in excess of $118,500 |
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