An employee earned $155,000 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 employee's total FICA payroll tax is:
A)$11,857.50.
B)$9,730.80.
C)$10,133.90.
D)$2,247.50.
E)$0,since the FICA tax is paid entirely by the employer.

Question

Quizplus · Accepted Answer

The maximum amount subject to Social Security tax is $127,200, so the employee will pay 6.2% of that amount, which is $7,886.40. They will also pay 1.45% of their entire earnings for Medicare tax, which is $2,247.50. Adding those two amounts together gives a total FICA payroll tax of $10,133.90.

An Employee Earned $155,000 Working for an Employer in the Current