An employee earned $43,300 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%. The employer's total FICA payroll tax for this employee is:

Question

Quizplus · Accepted Answer

The employer's FICA tax includes both Social Security and Medicare taxes. Social Security tax is 6.2% of $43,300, which is $2,684.60. Medicare tax is 1.45% of $43,300, which is $627.85. The total FICA tax is $2,684.60 + $627.85 = $3,312.45.

An Employee Earned $43,300 Working for an Employer in the Current