Tracey Thrasher earned $800 for the week.If her cumulative earnings are $30,000 prior to this pay period,how much FICA-OASDI must her employer withhold from her earnings? FICA tax rates are OASDI 6.2% on a limit of $106,800.
A)$496.00
B)$0
C)$49.60
D)None of the above are correct.

Question

Quizplus · Accepted Answer

FICA-OASDI tax is calculated as 6.2% of an employee's gross pay up to a maximum amount of $106,800 for the year.

For Tracey's case, her pay for the week is $800, which is below the limit. Therefore, her employer must withhold 6.2% of her gross pay for FICA-OASDI tax.

So, FICA-OASDI = 6.2% of $800 = $49.60

Therefore, the correct choice is C, $49.60.

Tracey Thrasher Earned $800 for the Week