An Employee Earned $62,500 During the Year Working for an Employer

question 174

Multiple Choice

An employee earned $62,500 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 current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of total unemployment taxes the employee must pay?

• A)$101.50
• B)$56.00
• C)$378.00
• D)$434.00
• E)$0.

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Definitions:

Expected Value

The average outcome of a random variable, calculated as a weighted average of all possible values.

Number Of Clients

The total count of individuals or entities that receive services or goods from a business or organization.

Probability Model

A mathematical representation of random phenomena, describing all possible outcomes and the likelihood of each outcome occurring.

Expected Amount

The predicted quantity or volume, often based on statistical analysis or previous data trends.