accounting?

Question

The amount earning s subject to social security tax at 6.2% is $76,200. All earnings are subject to 1.45% medicare tax. Prior to the current pay period, Employee A has cumulative earnings of $76,000. Employee A's earnings paid on December 30 for the current period are $1,000. The employer's total Fica Tax expense for the entire year is... please help

Answer 1

Are you asking for answers to a homework question?
You should be asking how to figure the answer.

FICA expense is Social Security plus Medicare.

Total earnings by employee were 77,000. Of which 76,200 is subject to Social Security and all of it is subject to medicare.

(76,200 x 6.2%)+(77,000 x 1.45%)=Total FICA
4724.40+1116.50=Total FICA
5840.90=total Fica

Answer 2

Last I recalled the medicare portion is only taxed on the first $69,000. So, take 6.2% X $76,200 = FICA, and 1.45% X $69,000 add them together. This is your total FICA and Medicare Tax for Employee A for the Fiscal Year.

Hope this helps but check that Medicare salary value first.

Answer 3

So- the employer's FICA tax expense would be:
76,200 (the max) x 6.2%
+
77,000 (earnings for year) x 1.45%

76,200 x .062 = 4727.40
77,000x .0145=1116.50
Total Fica tax expense = 5840.90

Answer 4

They want to know if you're aware that their is a ceiling on SS earnings as well as Medicare. Look up the rules and then you'll know them. I have forgotten them but then none of my clients have employees that make enough $ to worry about it.