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Bill and Mary are married. Mega Corporation employs them both. In 2018, Mary earned $70,000 and...

Bill and Mary are married. Mega Corporation employs them both. In 2018, Mary earned $70,000 and Bill earned $135,000, in both cases W-2 wages.

How much FICA tax were they required to pay for 2018?

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ReportAnswer #1

Hi

Answer is highlighted in yellow: Solution: Answer: $15,177.60 Explanation: As per IRS, each required to pay 7.65% FICA taxes

ReportAnswer #2

The calculation for Mary is correct, however the calctulation for Bill's calculation is incorrect, as there is no limit to medicare taxes. The calculation should be as follows: 

        128,400 x 6.2% = 7,961

        135,000 x 1.45% = 1,958

Total 9,918

source: https://www.irs.gov/pub/irs-pdf/p15.pdf page 33
answered by: theaccountingtroll
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