In 2005,Lee began working as a nurse anesthetist with a taxable income of $119,000.The Medicare tax was 1.45% and the Social Security tax rate was 6.2% to the maximum income of $90,000 that year.How much did Lee pay in FICA taxes in 2005?
A) $9,103.50
B) $7,305.50
C) $5,580.00
D) $1,725.50

Question

Quizplus · Accepted Answer

Lee's taxable income above the maximum Social Security limit is $119,000 - $90,000 = $29,000. 
The Medicare tax is 1.45% of Lee's entire taxable income: 
$119,000 x 0.0145 = $1,725.50
The Social Security tax is 6.2% of Lee's income up to the maximum limit and does not apply to anything above that limit: 
$90,000 x 0.062 = $5,580 
Therefore, Lee paid a total of $1,725.50 + $5,580 = $7,305.50 in FICA taxes.

In 2005,Lee Began Working as a Nurse Anesthetist with a Taxable