Answer:
The taxable income is 100,000 dollars
the taxes amount to 7,650 dollars
Explanation:
As our income are above the celling (123,000 dollars) we pay taxes up to 100,000 which is where the taxable income is capped at.
taxable income x tax rate = taxes payable
100,000 dollars' x 7.65% taxes = 7,650 dollars of taxes in social security and madicare.
Answer:
Social security: 6200, Medicare: 1783.50 total: 7983.50
Explanation:
The cap is on the FICA/social security portion only, not the Medicare portion so
100,000 x .062=6200 social security tax
123000x .0145=1783.50 Medicare tax
total taxes=7983.50
