An employee earned $138,500 working for an employer in the current year.The current rate for FICA Social Security is 6.2% payable on earnings up to $127,200 maximum per year and the rate for FICA Medicare 1.45% of all earnings.The employer's total FICA payroll tax for this employee is:
A)$9,894.65.
B)$10,595.65.
C)$9,730.80.
D)$2,008.25.
E)$0,since the FICA tax is only deducted from an employee's pay.

Question

Quizplus · Accepted Answer

FICA Social Security tax is 6.2% of the first $127,200 of earnings, or $7,905.60. FICA Medicare tax is 1.45% of all earnings, or $2,008.25. The total FICA payroll tax is $9,894.65.

An Employee Earned $138,500 Working for an Employer in the Current