Tim's gross pay for this month is $8950.His gross year-to-date pay,prior to this month,totaled $111,500.What is the amount of FICA tax withheld from Tim's pay for this month? (Assume an OASDI rate of 6.2%,applicable on the first $118,500 earnings,and a Medicare rate of 1.45%,applicable on all earnings.Do not round any intermediate calculations,and round your final answer to the nearest cent.)

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First, calculate the OASDI tax: Tim's year-to-date earnings before this month were $111,500, so with this month's pay of $8950, his total earnings are $120,450. The OASDI tax applies to the first $118,500 of earnings. Therefore, only $7,000 of this month's pay ($118,500 - $111,500) is subject to the 6.2% OASDI tax, which equals $434 ($7,000 * 0.062). Next, calculate the Medicare tax: The entire $8950 is subject to the 1.45% Medicare tax, which equals $129.78 ($8950 * 0.0145). Adding both taxes gives $563.78 ($434 + $129.78) as the total FICA tax withheld for the month.

Tim's Gross Pay for This Month Is $8950