An Employee Earned $43,300 Working for an Employer in the Current

question 103

Multiple Choice

An employee earned $43,300 working for an employer in the current year.The current rate for FICA Social Security is 6.2% payable on earnings up to $118,500 maximum per year and the rate for FICA Medicare 1.45%.The employer's total FICA payroll tax for this employee is:

• A) $8,950.50.
• B) $5,638.05.
• C) $3,312.45.
• D) $2,684.60.
• E) $0, since the FICA tax is only deducted from an employee's pay.

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Definitions:

Interest Recognize

The accounting practice of recording interest earned or incurred in the period it is applicable, regardless of when it is paid.

Note Accepted

A written promise to pay a specified amount of money, known as a promissory note, which has been accepted or endorsed.

Accrued Interest

Interest that has been incurred but not yet paid, typically relating to bonds or loans, calculated from the last payment date up to the current date.

Note Payable

A liability in written form that promises to pay a specified amount of money at a future date.