Renee is a salaried exempt employee who earns an annual salary of $64,200, which is paid semimonthly. She is married with four withholding allowances. What is her total FICA tax liability per pay period? (Do not round interim calculations, only round final answer to two decimal points.)
A) $165.85
B) $38.79
C) $204.64
D) $409.28

Question

Quizplus · Accepted Answer

FICA tax includes Social Security (6.2%) and Medicare (1.45%). Renee's semimonthly salary is $64,200 / 24 = $2,675. Social Security tax is $2,675 * 6.2% = $165.85, and Medicare tax is $2,675 * 1.45% = $38.79. Total FICA tax per pay period is $165.85 + $38.79 = $204.64.

Renee Is a Salaried Exempt Employee Who Earns an Annual