CM: 2.4 Social Security and Medicare Taxes

Front

What are the two components of FICA?

Back

Social Security and Medicare.

Front

What percentage of your earnings is withheld for Medicare?

Back

1.45%.

Tags

CCSS.6.RP.A.3C

Front

If gross income is $24,388, what is the Social Security Tax due at a rate of 6.2%?

Back

$1,512.

Tags

CCSS.7.RP.A.3

Front

What percentage of your earnings is withheld for Social Security?

Back

6.2%.

Tags

CCSS.6.RP.A.3C

Front

How much Medicare tax is withheld from a gross pay of $750 at a rate of 1.45%?

Back

$10.88.

Tags

CCSS.6.RP.A.3C

Front

Define FICA.

Back

FICA stands for the Federal Insurance Contributions Act, which mandates a payroll tax to fund Social Security and Medicare.

Front

What is the purpose of Social Security?

Back

To provide financial assistance to retirees, disabled individuals, and survivors of deceased workers.

Front

What is the purpose of Medicare?

Back

To provide health insurance for individuals aged 65 and older, and for some younger people with disabilities.

Front

How is the Social Security tax calculated?

Back

It is calculated as a percentage (6.2%) of gross income.

Tags

CCSS.6.RP.A.3B

Front

How is the Medicare tax calculated?

Back

It is calculated as a percentage (1.45%) of gross income.

Tags

CCSS.7.RP.A.3