An employee earned $128,500 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $118,500 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)$9,210.25.
B)$9,830.25.
C)$879.75.
D)$8,950.50.
E)$0, since the FICA tax is only deducted from an employee's pay.

Question

Quizplus · Accepted Answer

The employer's total FICA payroll tax is $9,210.25. This is calculated as follows:FICA Social Security tax: $118,500 x 6.2% = $7,333.00FICA Medicare tax: $128,500 x 1.45% = $1,877.25Total FICA payroll tax: $7,333.00 + $1,877.25 = $9,210.25

An Employee Earned $128,500 Working for an Employer in the Current