Find the Social Security and Medicare taxes on the gross earnings. Assume a 6.2% FICA rate and a 1.45% Medicare rate.
Round to the nearest cent.
-$530.00

Question

Quizplus · Accepted Answer

Social Security tax = $530.00 x 0.062 = $32.86 (rounded to the nearest cent)
Medicare tax = $530.00 x 0.0145 = $7.69 (rounded to the nearest cent) Social Security tax = $530 x 6.2% = $32.86 
Medicare tax = $530 x 1.45% = $7.69 
Rounded to the nearest cent, the Social Security tax is $32.86 and the Medicare tax is $7.69, so the answer is B.

Find the Social Security and Medicare Taxes on the Gross