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:

Insurance Expense

The cost incurred by a business or individual for purchasing insurance coverage, recognized as an expense over the policy period.