Question
Frieda’s 2024 year-to-date FICA taxable wages are
she receives a
she receives a
Ask by Bartlett Garza. in the United States
Mar 16,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The FICA tax withheld on the $10,000 bonus is $145.
Solution
FICA tax is composed of two parts: Social Security tax and Medicare tax.
-
The Social Security tax rate is
and applies only up to the wage base limit. Frieda’s year-to-date wages are already . Assuming the 2024 Social Security wage base is less than or equal to , the bonus will not be subject to Social Security tax. -
The Medicare tax rate is
and applies to all wages with no limit. Thus, the bonus is fully subject to Medicare tax.
The Medicare tax on the
Therefore, the FICA tax withheld on the bonus should be
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Frieda’s FICA tax consists of two components: Social Security tax and Medicare tax. For 2024, the Social Security tax rate is 6.2% on wages up to the maximum wage base limit of $160,200, while Medicare tax is 1.45% on all wages, with an additional 0.9% for income above $200,000. Since Frieda’s wages already exceed the Social Security limit, only the Medicare tax applies to her
To calculate the Medicare tax on the bonus:
-
.
Therefore, Frieda should have
