Godo Employee's Rates$• 7.65% on first $118,500of income• 1.45% on income above$118,5002016 FICA Tax Rates¹Matching Rates Paid bythe Employer• 7.65% on first $118,500paid in wages• 1.45% on wages above$118,500Self-Employed Rates• 13.3% on first $118,500 ofnet earnings2.9% on earnings above$118,500¹FICA taxes include Social Security and Medicare. The Social Security tax applies to the first $118,500 ofincome, while the Medicare tax applies to all income.Suppose Brendan has $96,400 of income from work and is self-employed. How much will Brendan have topay in FICA taxes?

FICA stands for Federal Insurance Contributions Act.FICA taxes include social security tax and…

Employee's Rates $ • 7.65% on first $118,500 of income • 1.45% on income above $118,500 2016 FICA Tax Rates¹ Matching Rates Paid by the Employer • 7.65% on first $118,500 paid in wages • 1.45% on wages above $118,500 Self-Employed Rates • 13.3% on first $118,500 of net earnings • 2.9% on earnings above $118,500 1FICA taxes include Social Security and Medicare. The Social Security tax applies to the first $118,500 of income, while the Medicare tax applies to all income. Suppose Brendan has $96,400 of income from work and is self-employed. How much will Brendan have to pay in FICA taxes?