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hello everyone on this lesson were going to be computing payroll deductions so it can get a little tricky sometimes whenever we do this so you just want to be sure and practice plenty okay so first were going to talk about fica which is social security and medicare basically put together into one term or one expression i guess federal insurance contribution act so we contribute both social security and medicare notice that it says below this little chart right in yellow earnings above 118 500 per calendar year are not taxed in 2017 the base changed to 127 200 were going to work with the 18 118 500 and it kind of just depends on what charts they used in the book and so thats what were going to do so you pay 6.2 percent of any money you earn until you get to 118 500 and then on medicare whoops i just noticed that i left off a percent lets put a percent right there here ill make it look better i have white okay well 1.45 for medicare you know i worked this out on my um my own uh po
