Juan earned $100,000 last year. approximately how much was withheld from his pay for fica?
In the past year, Juan’s earnings were $100,000. From this amount, approximately $7,650 was subtracted for FICA contributions.
What does FICA represent?
FICA stands for the Federal Insurance Contributions Act, a federal payroll tax in the United States. This tax is deducted from each paycheck, aiding in the accurate tracking of your wages, whether from self-employment or covered employment, through your nine-digit Social Security number.
Juan’s income last year totaled $100,000, with around $7,650 being deducted for FICA.
As a result, paying FICA taxes on your earnings helps you earn credits towards Social Security benefits.
For further information on FICA taxes, refer to the provided link.
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