An employee earned $4,300 working for an employer. The current rate for FICA Social Security is 6.2% and the rate for FICA Medicare 1.45%. The employer's total FICA payroll tax for this employee is:
A) $62.35.
B) $266.60.
C) $328.95.
D) $657.90.
E) Zero, since the FICA tax is a deduction from an employee's pay, and not an employer tax.

Question

Quizplus · Accepted Answer

The employer's total FICA payroll tax for this employee includes both the Social Security tax and the Medicare tax. The Social Security tax is 6.2% of $4,300, which equals $266.60. The Medicare tax is 1.45% of $4,300, which equals $62.35. Adding these two amounts together gives $266.60 + $62.35 = $328.95.

An Employee Earned $4,300 Working for an Employer