How much is an employer who withheld employee Medicare and Social Security taxes of $765 REQUIRED to send to the IRS?

How much is an employer who withheld employee Medicare and Social Security taxes of $765 REQUIRED to send to the IRS?

• A. $765
• B. $1,530
• C. $2,000
• D. $0

Answer: (B)

FICA taxes are split between the employee and the employer. The employer not only withholds the employee’s Social Security and Medicare amounts from wages but also must contribute an identical amount as a matching payroll tax. If the employee’s FICA withholding totaled 765, the employer must send to the IRS both the employee portion and the matching employer portion, for a total of 1,530. This reflects the standard 7.65% (Social Security 6.2% plus Medicare 1.45%) withheld from the employee and the same amount paid by the employer, totaling 15.3% of wages up to the Social Security wage base.

FICA taxes are split between the employee and the employer. The employer not only withholds the employee’s Social Security and Medicare amounts from wages but also must contribute an identical amount as a matching payroll tax. If the employee’s FICA withholding totaled 765, the employer must send to the IRS both the employee portion and the matching employer portion, for a total of 1,530. This reflects the standard 7.65% (Social Security 6.2% plus Medicare 1.45%) withheld from the employee and the same amount paid by the employer, totaling 15.3% of wages up to the Social Security wage base.