In December 2011,Homer Simpson worked for Springfield Power and earned $5,000.Federal income tax withholding is 15%.The FICA rate is 6.2% and the Medicare tax is 1.45%.How much cash will Springfield Power pay the government for FICA because of Homer's December earnings?
A)$750
B)$382.50
C)$620
D)$310

Question

Quizplus · Accepted Answer

The FICA tax rate is 6.2%. To find the amount paid for FICA, multiply Homer's earnings by the FICA rate: $5,000 * 6.2% = $310. However, since the question asks how much Springfield Power will pay the government for FICA, and FICA includes both the employee and employer portions (each pays 6.2%), the total amount paid to the government for FICA is $310 (employee portion) + $310 (employer portion) = $620.

In December 2011,Homer Simpson Worked for Springfield Power and Earned