Tim's gross pay for this month is​ $8,850. His gross year−to−date ​pay, prior to this​ month, totaled​ $127,000. What is the amount of FICA tax withheld from​ Tim's pay for this​ month? (Assume an OASDI rate of​ 6.2%, applicable on the first​ $132,900 earnings, and a Medicare rate of​ 1.45%, applicable on all earnings. Do not round any intermediate​ calculations, and round your final answer to the nearest​ cent.)

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 10PA: Lemur Corp. is going to pay three employees a year-end bonus. The amount of the year-end bonus and...
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​Tim's gross pay for this month is​ $8,850. His gross

year−to−date

​pay, prior to this​ month, totaled​ $127,000. What is the amount of FICA tax withheld from​ Tim's pay for this​ month? (Assume an OASDI rate of​ 6.2%, applicable on the first​ $132,900 earnings, and a Medicare rate of​ 1.45%, applicable on all earnings. Do not round any intermediate​ calculations, and round your final answer to the nearest​ cent.)

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