te (Social Security viedica With aing!

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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QUESTION 8
FICA Rate (Social Security + Medicare Withholding)
7.65%
(6.2% + 1.45%)
7.65%
(6.2% + 1.45%)
Employee
Employer
15.3%
Self-Employed
(12.4% + 2.9%)
Note: For employed wage earners, their Social Security portion is 6.2% on
earnings up to the taxable maximum. Their Medicare portion is 1.45% on all
earnings.
Based on the above schedule, if Rosa owns a small hair salon, what is her FICA rate?
O 7.65%
O Her rate is dependent upon her taxable income bracket
O 15.3%
O 6.2%
Transcribed Image Text:QUESTION 8 FICA Rate (Social Security + Medicare Withholding) 7.65% (6.2% + 1.45%) 7.65% (6.2% + 1.45%) Employee Employer 15.3% Self-Employed (12.4% + 2.9%) Note: For employed wage earners, their Social Security portion is 6.2% on earnings up to the taxable maximum. Their Medicare portion is 1.45% on all earnings. Based on the above schedule, if Rosa owns a small hair salon, what is her FICA rate? O 7.65% O Her rate is dependent upon her taxable income bracket O 15.3% O 6.2%
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