Question

tim mogilnitsky is a self - employed researcher. he pays fica at a rate of 12.4% and medicare at a rate of 2.9%. find the dollar amount of these taxes on the annual adjusted earnings of $36,676.14. tims fica tax is $ (round to the nearest cent.)

Explanation:

Step1: Identify the FICA rate and earnings

The FICA rate is 12.4% (or 0.124 in decimal) and the annual adjusted earnings are $36,676.14.

Step2: Calculate FICA tax

To find the FICA tax, multiply the earnings by the FICA rate: $36,676.14 × 0.124
First, calculate 36676.14 × 0.124:
36676.14 × 0.1 = 3667.614
36676.14 × 0.02 = 733.5228
36676.14 × 0.004 = 146.70456
Add them together: 3667.614 + 733.5228 = 4401.1368; 4401.1368 + 146.70456 = 4547.84136

Answer:

4547.84 (rounded to the nearest cent)