An employee is paid a salary of $11,725 per month.
If the current FICA rate is 6.2% on the first $115,000 of earnings, how much should be withheld for FICA tax during the month of April?
The employee should pay $726.95 for tax. Since his income this month, $11,725, is within $115,000 stipulated by FICA, the 6.2% tax rate applies to all of his income. Therefore, he should pay 11725*6.2%=726.95 dollars.
