Laurie expects to make $100,000 in 2007. Her social security tax rate is 6.20% up to the wage base, Medicare is 1.45%. How much FICA is Laurie expected to pay for the year?
What was the FICA wage base in 2007?
OK I looked it up. It was $97,500
Take 6.4% of 97,500 (the 2007 wage base) and add 1.45% of $100,000 (the actual income). There is no "wage base" for the Medicare deduction.
Yikes. Makes me glad I'm retired