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 $117,000 maximum per year and the rate for FICA Medicare 1.45%.The employer's total FICA payroll tax for this employee is:
A)$9,117.25.
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 for this employee is $9,117.25. This is calculated as follows:FICA Social Security tax: $117,000 x 6.2% = $7,274FICA Medicare tax: $128,500 x 1.45% = $1,843.25Total FICA payroll tax: $7,274 + $1,843.25 = $9,117.25

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