Greer Company pays Jamal Perry a salary of $3,000 per week.How much FICA tax must Greer pay with regards to this employee (including both the employee and employer portions)? (Assume a Social Security rate of 6 percent on the first $110,000 of income and a Medicare rate of 1.5 percent on all earnings. )

Question

Quizplus · Accepted Answer

Employee's portion of FICA = $3,000 × 7.5% = $225,which is withheld from Jamal's gross pay.The company matches that amount and,as such,is responsible for a total of $450 (or $225 + $225).

Greer Company Pays Jamal Perry a Salary of $3,000 Per