https://file.aiquickdraw.com/mathbot/file/1729435652660o7plqwwy.jpg

In the image, you are tasked with calculating FICA taxes and income tax based on earnings of $18,000 from part-time work.

Let's go over the steps to understand how these values are calculated:

### Part A: FICA Taxes
FICA (Federal Insurance Contributions Act) taxes cover Social Security and Medicare. The rates for employees are given in the image:
- 7.65% on the first $142,800 of income.

So, to calculate your FICA taxes on $18,000:
\[
FICA\ Taxes = 18,000 \times 0.0765 = 1,377
\]

This matches the value provided in the image: **$1,377**.

### Part B: Income Tax
The problem assumes you are single with no dependents, taking the standard deduction. The income tax of **$545** is already calculated. To understand this, it's likely based on tax brackets, but the exact rate isn't shown in the image. It could be a simplified estimate based on taxable income after deductions.

Would you like more clarification on any of the steps or calculations?

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Here are 5 follow-up questions related to this problem:
1. How are Social Security and Medicare taxes distributed within the 7.65% FICA rate?
2. What portion of the FICA taxes goes towards Medicare and Social Security?
3. What is the standard deduction for a single filer in 2021, and how does it impact your taxable income?
4. How would your tax calculations change if your income exceeded $142,800?
5. How does the tax rate change if you file jointly instead of as a single filer?

**Tip:** Understanding tax brackets and deductions can help you accurately calculate your income tax in different scenarios.

To help pay for college, you worked part-time at a local restaurant, earning $18,000 in wages and tips. Calculate FICA taxes and income tax, assuming you are single with no dependents.

Calculate FICA taxes (7.65%) and income tax on $18,000 earnings from a part-time job. Learn how to apply the FICA tax rates and understand the income tax implications for a single filer with no dependents.

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