Davis and Thompson Have Earnings of $850 Each

question 35

Multiple Choice

Davis and Thompson have earnings of $850 each. The social security tax rate is 6% and the Medicare tax rate is 1.5%. Assuming that the payroll will be paid on December 29, what will be the employer's total FICA tax for this payroll period?

• A) $102.00
• B) $127.50
• C) $96.00
• D) $25.50

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Definitions:

Trillion Dollar Economies

Countries whose Gross Domestic Product (GDP) exceeds one trillion dollars, reflecting a high level of economic output.

NDP

The total value of all goods and services produced within a country's borders in a specific time period, minus depreciation.

GDP

Gross Domestic Product, the total value of all goods and services produced over a specific time period within a country's borders, serving as a comprehensive measure of economic activity.

Output

The total amount of goods or services produced by a company, industry, or economy within a certain period.