Prior to the Last Weekly Payroll Period of the Calendar

question 67

Multiple Choice

Prior to the last weekly payroll period of the calendar year, the cumulative earnings of employees A and B are $106,150 and $91,000, respectively.Their earnings for the last completed payroll period of the year are $850 each.Social security tax rate is 6% on maximum of $106,800.All earnings are subject to Medicare tax of 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 on the two salary amounts of $850 each?

• A) $127.50
• B) $115.50
• C) $76.50
• D) $63.75

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Definitions:

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Describes actions or conditions that are allowed or tolerated, especially in contexts where specific authorization or regulation may not exist.

Mandatory

Required or compulsory, indicating that certain actions, procedures, or measures must be followed or executed as per legal or organizational guidelines.

Illegal

Pertains to activities or actions that are prohibited by law.

Certification Elections

A process supervised by an official body in which employees vote to determine whether they wish to be represented by a particular labor union.