The Chief Executive Officer Earns $20,000 Per Month

question 76

Multiple Choice

The chief executive officer earns $20,000 per month.As of June 30,her gross pay was $120,000.The tax rate for Social Security is 6.2% of the first $127,200 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 4.4%.Both unemployment taxes are applied to the first $7,000 of an employee's pay.What is the amount of FICA- Social Security withheld from this employee for the month of July?

• A)$7,347.00
• B)$1,147.00
• C)$1,240.00
• D)$446.40
• E)$290.00

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