An Employee Earned $62,500 During the Year Working for an Employer

question 104

Multiple Choice

An employee earned $62,500 during the year working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.8%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount of total unemployment taxes the employee must pay?

• A) $101.50
• B) $56.00
• C) $378.00
• D) $434.00
• E) $0.00

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Definitions:

Ceruminous

Related to special sweat glands in the ear canal that produce earwax, which helps to protect and lubricate the ear.

Sebaceous

Relating to or denoting glands in the skin that secrete sebum into hair follicles.

Mammary

Pertaining to the mammary glands, which are the milk-producing glands located in the breasts of female mammals.

Cochlea

A spiral-shaped cavity in the inner ear that plays a crucial role in the sense of hearing by converting sound vibrations into neural signals.