Determine the total annual fica tax for an annual salary of $165,000. use $106,800 for maximum taxable earnings.
a.
$901.41
b.
$9,014.10
c.
$1,262.25
d.
$12,622.50

The Federal Insurance Contributions Act (FICA) requires employers to withhold a certain percentage of an employee's income as tax. The categories are: 6.2% as social security tax 1.45% as Medicare tax 0.9% as Medicare surtax for employees earning more than $200,000 In this case, the percentage of tax applied will be 6.2 + 1.45 = 7.65% The FICA tax will be 165,000 * 0.0765 FICA tax = $12,622.50