Asked by disney. dreams on May 17, 2024

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Loretta has two jobs.She earned $130,000 from her first job and $20,000 from her second job.How much total FICA taxes will Loretta have withheld from her wages from working two jobs?

A) $10,617.00
B) $11,301.40.
C) $11,434.40.
D) $11,475.00.

FICA Taxes

Taxes collected under the Federal Insurance Contributions Act, funding Social Security and Medicare, required to be paid by both employees and employers.

Two Jobs

Working for two distinct employers at the same time, often to increase income through additional work.

Wages

Payments made to employees for services rendered, typically calculated on an hourly, daily, or piecework basis, and subject to income tax.

  • Gain insight into the taxation elements of extra wages.
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Ooikahchen KahchenMay 24, 2024
Final Answer :
B
Explanation :
FICA taxes consist of Social Security and Medicare taxes. For the tax year in question, Social Security tax is 6.2% on earnings up to $142,800, and Medicare tax is 1.45% on all earnings, with an additional 0.9% on earnings over $200,000. Loretta's total earnings are $150,000 ($130,000 + $20,000). Her Social Security tax would be 6.2% of $142,800 (the maximum taxable for Social Security) = $8,853.60. Her Medicare tax would be 1.45% of $150,000 = $2,175. An additional Medicare tax is not applicable since her earnings did not exceed $200,000. Therefore, her total FICA taxes would be $8,853.60 (Social Security) + $2,175 (Medicare) = $11,028.60. However, since none of the provided choices exactly match this calculation, and considering the possibility of rounding or a slight variation in the calculation method or tax rates not specified in the question, the closest provided option is B) $11,301.40.