Compute the FICA – OADSI and FICA Medicare tax as well as the effective tax rates on the following taxpayer under the following three independent assumptions: The taxpayer has tax wages of a) $100,000, b) $1,000,000, and c) $5,000,000. For purposes of this case use the 2020 OASDI Cap of $137,700 and ignore the increased additional Medicare tax rate enacted as part of the Affordable Care Act that took effect in 2013.

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FICA tax includes two taxes Medicare tax and Social Security tax The 2021 tax rates for employers ar... View the full answer