Trey Morgan is an employee who is paid monthly.For the month of January of the current year,he earned a total of $4,538.The FICA tax for social security is 6.2% of the first $127,200 earned each calendar year,and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the employer.The amount of federal income tax withheld from his earnings was $680.70.What is the total amount of taxes withheld from the Trey's earnings?
A)$1,375.02
B)$746.50
C)$962.06
D)$1,027.86
E)$680.70

Question

Quizplus · Accepted Answer

To calculate the total amount of taxes withheld from Trey's earnings, we need to consider both the FICA taxes (Social Security and Medicare) and the federal income tax withheld. The FICA tax for Social Security is 6.2% of earnings, and for Medicare, it's 1.45% of all earnings. - Social Security tax = 6.2% of $4,538 = 0.062 * $4,538 = $281.36- Medicare tax = 1.45% of $4,538 = 0.0145 * $4,538 = $65.80- Federal income tax withheld = $680.70Total taxes withheld = Social Security tax + Medicare tax + Federal income tax withheld = $281.36 + $65.80 + $680.70 = $1,027.86

Trey Morgan Is an Employee Who Is Paid Monthly