Business FinancesQuestion 284 of 690
An employee's gross wages for a pay period are $2,000. Using the combined employee FICA rate of 7.65% (Social Security 6.2% plus Medicare 1.45%), how much is withheld from the paycheck for FICA?
a.$124.00
b.$29.00
c.$153.00
d.$200.00
Explanation
FICA withheld = $2,000 × 7.65% = $153.00. This combines Social Security ($2,000 × 6.2% = $124) and Medicare ($2,000 × 1.45% = $29).
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