What percentage of the FICA payroll tax do workers who are not self-employed pay? For someone...

What percentage of the FICA payroll tax do workers who are not self-employed pay? For someone who earned $50,000 in 2019, how much did that person pay in FICA taxes? For someone who earned $200,000 in 2019, how much did that person pay in FICA taxes?

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Expert Solution

The tax rate for 2019 for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. And the earning limit for social security tax is 132900 as on 2019. And there is no cap for medicare .

Tax for employee for $ 50000

Social security = $ 50000 × 12.4% = $ 6200

Medicare = $ 50000 × 2.9% = $ 1450

Total = 6200 + 1450 = $ 7650

Employee's half = $ 7650 × 0.5 = $ 3825

Tax for employee for $ 200000

Social security = $ 132900 × 12.4% = $ 16480

(since the earning limit of social security is 132900, we can calculate tax for maximum amount of $ 132900)

Medicare = $ 200000 × 2.9% = $ 5800

(There is no limit in earnings for medicare)

Total = 16480 + 5800 = $ 22280

Employee's half = $ 22280 × 0.5 = $ 11140

ekkarill92 answered 1 year ago

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