The chief executive officer earns $20,000 per month. As of May 31, her gross pay

Question

The chief executive officer earns $20,000 per month. As of May 31, her gross pay was $100,000. The tax rate for Social Security is 6.2% of the first $118,500 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee’s pay. What is the amount of FICA - Medicare withheld from this employee for the month of June?
Multiple Choice

$7,347.00

$1,147.00

$1,240.00

$268.25

$290.00

Explanation / Answer

FICA - Medicare withheld = 20000*1.45%= 290 Option 5 is correct

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.