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. $96.00   b. $127.50   c. $25.50   d. $102.00

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 16MC: An employee earns $8,000 in the first pay period. The FICA Social Security Tax rate is 6.2%, and the...
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  1. 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.

    $96.00

      b.

    $127.50

      c.

    $25.50

      d.

    $102.00

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