Prior to the Last Weekly Payroll Period of the Calendar

question 67

Multiple Choice

Prior to the last weekly payroll period of the calendar year, the cumulative earnings of employees A and B are $106,150 and $91,000, respectively.Their earnings for the last completed payroll period of the year are $850 each.Social security tax rate is 6% on maximum of $106,800.All earnings are subject to Medicare tax of 1.5%.Assuming that the payroll will be paid on December 29, what will be the employer's total FICA tax for this payroll period on the two salary amounts of $850 each?

• A) $127.50
• B) $115.50
• C) $76.50
• D) $63.75

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Definitions:

Cultural

Pertaining to the ideas, customs, and social behavior of a society, group, or community.

Socioeconomic

Relating to or concerned with the interaction of social and economic factors.

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A parenting style characterized by high expectations accompanied by strong support and emotional warmth.

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