Berkley's gross pay for the week is $950. His deduction for federal income tax is based on a rate of 20%. He has no voluntary deductions. His yearly pay is under the limit for OASDI. How much is the amount of FICA tax that will be withheld from Berkley's pay? (Assume a FICA-OASDI Tax of 4.2% and FICA-Medicare Tax of 1.45%.)
A)$190.00
B)$53.68
C)$243.68
D)$60.32

Question

Quizplus · Accepted Answer

First, we need to calculate federal income tax deduction:

$950 x 0.20 = $190

Now, we can calculate FICA taxes:

OASDI Tax: $950 x 0.042 = $39.90 
Medicare Tax: $950 x 0.0145 = $13.78

Total FICA tax: $39.90 + $13.78 = $53.68

Therefore, the amount of FICA tax that will be withheld from Berkeley's pay is $53.68.

Berkley's Gross Pay for the Week Is $950