The chief executive officer earns $20,000 per month.As of May 31,her gross pay was $100,000.The tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings.The current FUTA tax rate is 0.6%,and the SUTA tax rate is 5.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.
-What is the amount of FICA - Medicare withheld from this employee for the month of June?
A) $7,347.00
B) $1,147.00
C) $1,240.00
D) $268.25
E) $290.00
Correct Answer:
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