Art Panache, the Sole Employee of Panache Sales, Has Gross

question 96

True/False

Art Panache, the sole employee of Panache Sales, has gross salary for March of $5,000. The entire amount is under the OASDI limit of $110,100, and thus subject to FICA. The total amount of employee FICA tax is $565. (Assume a FICA-OASDI Tax of 4.2% and FICA-Medicare Tax of 1.45%.)

---

Definitions:

Nominal Interest Rate

The stated rate of interest on a loan or financial investment, not adjusted for inflation.

Real Rate Of Interest

The rate of interest an investor expects to receive after allowing for inflation.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, indicating the health of an economy.

Labor Force

The aggregate sum of individuals working or in pursuit of work within a nation or area.