Xinyi worked for two different employers in 2022 and her total wages were $80,000 for one and
Question:
Xinyi worked for two different employers in 2022 and her total wages were $80,000 for one and $87,000 for the other (total $167,000). Which of the following best describes Xinyi’s 2022 FICA taxes?
a. Xinyi and the employer will each pay half of Social Security and Medicare taxes on her total wages and both will claim an income tax credit for the portion of each tax in excess of the 2022 FICA cap.
b. Xinyi and the employer will each pay half of Social Security and Medicare taxes on her total wages and only the employer will claim an income tax credit for the portion of each tax in excess of the 2022 FICA cap.
c. Xinyi and the employer will each pay half of Social Security and Medicare taxes on her total wages and only Xinyi will claim an income tax credit for the portion of each tax in excess of the 2022 FICA cap.
d. Xinyi and the employer will each pay half of Social Security and Medicare taxes on her total wages and only Xinyi will claim an income tax credit for the portion of only Social Security tax in excess of the 2022 FICA cap.
Step by Step Answer:
Income Tax Fundamentals 2023
ISBN: 9780357719527
41st Edition
Authors: Gerald E. Whittenburg, Steven Gill