Question

FICA Taxes. (Obj. 1) For each of the following scenarios, compute the amount of each employee's Medicare taxes owed (to be refunded) that they report on their respective tax returns. a. Mia, a single taxpayer, works for two employers during the year. Medicare wages at hen jobs are $85,000 and $150,000, respectively. b. Shawn, a single taxpayer, works for two employers during the year. Medicare wages at his jobs are $215,000 and $35,000, respectively. C. Ron and Patty Simone file a joint tax return. Both Ron and Patty work full-time. Their Medicare wages are $210,000 and $120,000, respectively. d. Same as in Part C., except that Patty's wages are $20,000 (instead of $120,000).

Answer 1

Medicare tax is 2.9% which is divided equally between employer and employee.

a) Mia medicare wages are $85,000 and $150,000

Total medicare wages = $235,000

Employee's portion = $235,000 * 1.45% = $3407.5

Employer's portion = $235,000 * 1.45% = $3407.5

b) Shawn medicare wages are $215,000 and $35,000

Total medicare wages = $250,000

Employee's portion = $250,000 * 1.45% = $3625

Employer's portion = $250,000 * 1.45% = $3625

c) Ron and patty simone medicare wages are $210,000 and $120,000

Total medicare wages = $330,000

Employee's portion = $330,000 * 1.45% = $4785

Employer's portion = $330,000 * 1.45% = $4785

d) Ron and patty simone medicare wages are $210,000 and $20,000

Total medicare wages = $230,000

Employee's portion = $230,000 * 1.45% = $3335

Employer's portion = $230,000 * 1.45% = $3335