Tom's Gross Pay for the Month Is $2,400

question 127

Multiple Choice

Tom's gross pay for the month is $2,400. Tom's deduction for federal income tax is based on a rate of 20%. Tom has no voluntary deductions. Tom's yearly pay is under the limit for OASDI. What is the amount of FICA withheld from Tom's pay? (Assume a FICA-OASDI Tax of 4.2% and FICA-Medicare Tax of 1.45%.)

• A)$615.60
• B)$135.60
• C)$480.00
• D)$296.40

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Definitions:

Affidavit

A written statement made under oath, used as evidence in court.

Complaint

A formal legal document submitted to a court that initiates a lawsuit, detailing the plaintiff's grievances and the relief sought.

Legal Relief

Remedies or compensations provided through judicial proceedings for resolving a grievance or dispute.

Long-Arm Statute

A law that allows for the service of process beyond the borders of a state to individuals or entities that have sufficient connections to the state.