Help on math question

Question

Use the 2016 FICA tax​ rates, shown​ below, to answer the following question.

If a taxpayer is not​ self-employed and earns $133,000​, what are the​ taxpayer's FICA​ taxes?

Employee's Rates:

7.65% on first $118,500 of income

1.45% of income in excess of $118,500

Matching Rates Paid by the Employer:

7.65% on first $118,500 paid in wages

1.45% of wages paid in excess of $118,500

Self-Employed Rates:

15.3% on first $118,500 of net profits

2.9% of net profits in excess of $118,500

FICA taxes are $__

​(Type an integer or a decimal. Round to the nearest cent as​ needed.)

Answer 1

This tax-payer is NOT self-employed, and therefore an employee of a business. You will use the first set of figures. For the first $118,500, the tax rate is 7.65% and any additional amount is at 1.45%.

1) 118,500 * 0.0765 = $9,065.25

Then, find the difference to know anything above $118,500.

2) $133,000 - $118,500 = $14,500

Then find the rate on the $14,500.

3) 14,500 * 0.0145 = $210.25

Add them together for the total amount.

$9,065.25 + $210.25 = $9,275.50