Asked by Natacha Guerrero on May 02, 2024
Verified
An employee earned $47,000 during the year working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is:
A) $681.50.
B) $2,914.00.
C) $3,595.50.
D) $7,191.00.
E) Zero, since the employee's pay exceeds the FICA limit.
Medicare
Medicare is a federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.
- Familiarize yourself with the basics of FICA taxes and their role in payroll procedures.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
C
Explanation :
To calculate the employee's FICA taxes, we'll need to multiply their gross income of $47,000 by the Social Security and Medicare tax rates.
Social Security tax = 6.2% of $47,000 = $2,914.
Medicare tax = 1.45% of $47,000 = $681.50.
The total amount of FICA taxes paid by the employee for the year is $2,914 + $681.50 = $3,595.50.
Therefore, the best choice is C.
Social Security tax = 6.2% of $47,000 = $2,914.
Medicare tax = 1.45% of $47,000 = $681.50.
The total amount of FICA taxes paid by the employee for the year is $2,914 + $681.50 = $3,595.50.
Therefore, the best choice is C.
Learning Objectives
- Familiarize yourself with the basics of FICA taxes and their role in payroll procedures.
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