An Employee Earned $128,500 Working for an Employer in the Current

question 136

Multiple Choice

An employee earned $128,500 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% of all earnings. The employer's total FICA payroll tax for this employee is:

• A)$9,210.25.
• B)$9,830.25.
• C)$879.75.
• D)$8,950.50.
• E)$0, since the FICA tax is only deducted from an employee's pay.

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Definitions:

Termination

The act of ending an employment relationship or contract, either voluntarily by resignation or retirement, or involuntarily by dismissal or layoff.

Specific Intent

Specific intent entails a particular mental state in which a person engages in an act with a specific purpose or objective in mind.

Revocation Effective

The point at which a revocation, or calling back of an offer, becomes legally binding.

Invitation to Negotiate

A pre-contractual communication inviting parties to discuss terms before entering into a formal agreement.