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

question 192

Multiple Choice

An employee earned $62,500 during the year working for an employer. The FICA tax rate for Social Security is 6.2% of the first $118,500 of employee earnings per 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 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) $434.00
• B) $56.00
• C) $378.00
• D) $0.00
• E) $101.50

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