How do you calculate State Tax? How do you calculate FICA Tax
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
How do you calculate State Tax?
How do you calculate FICA Tax
Expert Solution
Step 1
State tax:
State income tax is a direct tax. State tax is levied by a state in the state the person earns the income. Income is what person earns. In your state of residence, it may mean all your income everywhere
FICA tax:
FICA is known as “Federal Insurance Contributions Act.” FICA tax is the money that is taken out of workers' payments to pay their Social Security retirement and Medicare (Hospital Insurance) benefits. It is one of a mandatory payroll deduction.
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