1. Your total FICA contribution which includes Social Security and Medicare is 15.3% of your salary. 12.4% of your FICA contribution is for Social Security. Your annual income is $67,525. What will be the total deduction be for you and your employer for Medicare? a)$1,246 b)$1,530 c)$1,575 d)$1,958
2. You earned $96,000 last year. Your effective tax rate went as follows; Federal: 16.3, FICA: 7.65, state: 4.5. If you added them all and subtracted them from your gross income what would remain of your income from last year? a)$27,198 b)$28,450 c)$68,688 d)$76,576
3. If you are self-employed, you don't have to pay FICA on all your salary, just on 92.35% of it. If your salary is $128,255 what is your total monthly contribution (FICA is 15.3%)? a)$1,225 b)$1,282 c)$1,510 d)$9,235
4. Tax rates are 10% on the first $10,000 you earn and 20% on amounts over that. You earn $15,000. What is your tax? a)$2,000 b)$3,000 c)$4,000 d)$5,000
5. You will owe 15.3% of your salary for your total FICA contribution. You are an employee, so you pay one half of this total contribution. Your employer pays the other half for you. If your salary is $82,000/year what is going to be deducted from your monthly paycheck as your FICA contribution? a)$523 b)$1,200 c)$6,273 d)$12,546
6. You earned $62,715 this year and your Income-tax calculator says you owe $8,818 in taxes. But you neglected to deduct $1,000 for your dependent Grandfather and the $5,000 you put in an IRA. This reduces your income by $6,000 to $56,715. Your new effective tax rate is 10.70%. What is the difference between your old $62,715 based tax debt and the updated tax debt with another dependent and the IRA contribution? a)$2,749.50 b)$4,215.50 c)$5,926.71 d)$6,068.50