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7 June, 00:46

Brooke, a single taxpayer, works for Company A for all of 2019, earning a salary of $50,000. b. Assume Brooke works for Company A for half of 2019, earning $50,000 in salary, and she works for Company B for the second half of 2019, earning $90,000 in salary. What is Brooke's FICA tax obligation for the year?

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  1. 7 June, 03:36
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    Answer: $10,710

    Explanation: The FICA tax (Federal Insurance Contribution Act) an employee payroll tax that funds Social Security benefits 6.2% and Medicare health insurance 1.45%.

    Company A

    Earnings $50,000

    r = 6.2%

    Social security = $50,000 * 0.062

    = $3100

    Medicare = $50,000 * 0.0145

    = $725

    Company B

    Earnings = $90,000

    Social security = $90,000 * 0.062

    = $5580

    Medicare = $90,000 * 0.0145

    = $1305

    Brooke FICA tax obligations of the year.

    = $5580 + $1305 + $3100 + $725

    = $10,710
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