Trey Morgan is an employee who is paid monthly.For the month of January of the current year,he earned a total of $4,538.The FICA tax for social security is 6.2% of the first $128,400 earned each calendar year,and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the employer.The amount of federal income tax withheld from his earnings was $680.70.His net pay for the month is:

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The correct answer is A.The FICA tax for social security is 6.2% of the first $128,400 earned each calendar year, and the FICA tax rate for Medicare is 1.45% of all earnings for both the employee and the employer. Trey Morgan earned a total of $4,538 for the month of January, so his FICA tax for social security is $4,538 x 6.2% = $280.36, and his FICA tax for Medicare is $4,538 x 1.45% = $65.84. The total FICA tax withheld from his earnings is $280.36 + $65.84 = $346.20. The federal income tax withheld from his earnings was $680.70. So, his net pay for the month is $4,538 - $346.20 - $680.70 = $3,510.14.

Trey Morgan Is an Employee Who Is Paid Monthly