Tim's Gross Pay for This Month Is $8950

question 10

Multiple Choice

Tim's gross pay for this month is $8950.His gross year-to-date pay,prior to this month,totaled $111,500.What is the amount of FICA tax withheld from Tim's pay for this month? (Assume an OASDI rate of 6.2%,applicable on the first $118,500 earnings,and a Medicare rate of 1.45%,applicable on all earnings.Do not round any intermediate calculations,and round your final answer to the nearest cent.)

• A) $434.00
• B) $129.78
• C) $563.78
• D) $554.90

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Definitions:

Contract Negotiations

The process of discussing terms and reaching an agreement in a contract, often involving matters such as price, delivery, and terms of service between two or more parties.

Low-involvement

Products or services that require minimal thought and effort from consumers before purchase due to their simplicity and low cost.

High-involvement

Refers to purchase decisions that carry a higher risk to buyers and therefore require more thought and research.

Reference Groups

Groups that people refer to when evaluating their own qualities, circumstances, attitudes, values, and behaviors.