AC 116 MIDTERM QUESTIONS AND ANSWERS

The amount of earnings subject to social security tax at 6% is $100,000. All earnings are subject to Medicare tax of 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 on the two salary amounts of $850 each? a. $127.50 b. $115.50 c. $112.50 d. $0 ANS: B. 40. ................
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