If the Social Security tax rate is 7.65 percent (6.2% FICA plus 1.45% Medicare) and the maximum taxable yearly earnings is $117,000,how much Social Security tax would be paid by an employee earning $127,000?
A) $8,950.50
B) $9,095.50
C) $9,715.50
D) $18,910
Correct Answer:
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