Question

Phil and Ling, husband and wife, both are employed by Laurel Corporation. Phil earns $135,000 in salary in 2019, and Ling earns $70,000.

a) How much FICA tax must Phil and Ling pay for 2019?

b) Please break down the different components of FICA tax for Phil and Ling for 2019.

c) Is Laurel Corporation required to make a separate FICA contribution for Phil and Ling for 2019? If so, what is the amount of the contribution? d) What is the total amount of the FICA payment remitted by Laurel Corporation to the IRS for Phil and Ling in 2019?

Answer 1

Particulars		Phil	Ling
Salary	A	1,35,000	70,000
FICA tax
Social Security tax (6.2%)	B= A*6.2%	8,240**	4,340
Medicare tax (1.45%)	C= A*1.45%	1,958	1,015
Total FICA tax paid by employee	D=B+C	10,197	5,355
Total FICA tax paid by employer	E	10,197	5,355
Total Amount remitted to IRS	D+E	20,395	10,710
**(132,900*6.2%) = 8240

A. FICA tax paid by both employees is "D".

B. Break down is also provided in table.

C. Yes company is required to match same contribution as employee's one.

D. Total Amount remitted is in table.  

** 132,900 is maximum amount required to calculate Social Security tax.

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