# An employee earns $8,000 in the first pay period. The FICA Social Security Tax rate is 6.2%, and the FICA Medicare tax rate is 1.45%. What is the employee’s FICA taxes responsibility? A.$535.50 B. $612 C. None, only the employer pays FICA taxes D.$597.50 E. $550 FindFindarrow_forward ### Principles of Accounting Volume 1 19th Edition OpenStax Publisher: OpenStax College ISBN: 9781947172685 #### Solutions Chapter Section FindFindarrow_forward ### Principles of Accounting Volume 1 19th Edition OpenStax Publisher: OpenStax College ISBN: 9781947172685 Chapter 12, Problem 16MC Textbook Problem 3 views ## An employee earns$8,000 in the first pay period. The FICA Social Security Tax rate is 6.2%, and the FICA Medicare tax rate is 1.45%. What is the employee’s FICA taxes responsibility?A. $535.50B.$612C. None, only the employer pays FICA taxesD. $597.50E.$550

To determine

Introduction:

Involuntary deductions are mandatory deductions from an employee’s gross pay, due to application of laws. These deductions are for income tax, social security tax, medicare tax, and additional medicare tax.

To compute:

The employee’s FICA taxes responsibility.

### Explanation of Solution

b.

Computation of employee’s FICA taxes responsibiliy:

FICA taxes can be computed by using the following formula:

Tax=Gross Pay×(Social Security Tax Rate+Medicare Tax Rate)

Substitute $8,000 for the Gross Pay, 6.2% for Social Security Tax Rate, and 1.45% for the Medicare Tax rate. Tax=$8,000×(6.2%+1

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