An Employee Earned $37,000 During the Year Working for an Employer

question 35

Multiple Choice

An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $117,000.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)$2,294.00.
• B)$536.50.
• C)$2,830.50.
• D)$1,757.50.
• E)$8,950.50.

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Definitions:

Null Hypotheses

A default hypothesis that there is no statistical significance in a set of given observations, essentially stating that any observed effect is due to chance.

Polychlorinated Biphenyl

Polychlorinated biphenyls (PCBs) are a group of man-made organic chemicals consisting of carbon, hydrogen, and chlorine atoms, known for their environmental toxicity and classification as persistent organic pollutants.

Gas Mileage

A measure of how many miles a vehicle can travel on a gallon of fuel.

Type I Error

An error that occurs in hypothesis testing when a true null hypothesis is incorrectly rejected.