use the 2021 fica tax rates, shown, to answer the following question. if a taxpayer is not self - employed…

use the 2021 fica tax rates, shown, to answer the following question. if a taxpayer is not self - employed and earns $157,000, what are the taxpayers fica taxes? employees rates 7.65% on first $142,800 of income 1.45% of income in excess of $142,800 matching rates paid by the employer 7.65% on first $142,800 paid in wages 1.45% of wages paid in excess of $142,800 self - employed rates 15.3% on first $142,800 of net profits 2.9% of net profits in excess of $142,800 the taxpayers fica taxes are $ (round to the nearest cent as needed.)

use the 2021 fica tax rates, shown, to answer the following question. if a taxpayer is not self - employed and earns $157,000, what are the taxpayers fica taxes? employees rates 7.65% on first $142,800 of income 1.45% of income in excess of $142,800 matching rates paid by the employer 7.65% on first $142,800 paid in wages 1.45% of wages paid in excess of $142,800 self - employed rates 15.3% on first $142,800 of net profits 2.9% of net profits in excess of $142,800 the taxpayers fica taxes are $ (round to the nearest cent as needed.)

Answer

Explanation:

Step1: Calculate tax on first - part of income

The first $142,800 is taxed at 7.65%. $142800\times0.0765 = 10924.2$

Step2: Calculate income in excess

The income is $157000$, so the amount in excess of $142800$ is $157000 - 142800=14200$.

Step3: Calculate tax on excess income

The excess income is taxed at 1.45%. $14200\times0.0145 = 205.9$

Step4: Calculate total FICA tax

Add the two amounts of tax together. $10924.2+205.9 = 11130.1$

Answer:

$11130.10$