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The Rate for FICA Social Security Is 6

question 181

Essay

The rate for FICA Social Security is 6.2% and the rate for FICA Medicare is 1.45%.Calculate the total amount of FICA withholding for an employee whose pay is $2,400 and is entirely subject to these FICA taxes.


Definitions:

Consumer's Income

The total amount of income a consumer has available to spend on goods and services.

Utility

The satisfaction or benefit derived from consuming goods or services.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.

Capital

Economic resources used in the production of goods and services, such as machinery, buildings, or tools.

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