Accounts 38.640 O Debit Bad Debts Expense 344,600, crean Allowance for Douttfia

Question

Accounts 38.640 O Debit Bad Debts Expense 344,600, crean Allowance for Douttfia Accounts 144 800 An employee earned $42,800 working for an employer in the current year.The current rate for FICA Social Security is 6.2% payable on earnings up to $118,500 maximum per year and the rate lor FCA Medicare 1.45%. The employer's total FICA payroll tax for this employee is. O $6,548.40. O Zero, since the FICA tax is a deduction from an employee's pay, and not an employer tax O $3,274.20 O $620.60. $2,653.60. tpx

Explanation / Answer

See, the question requires total FICA ......... which means we have to compute both employer and employee share.

Thus social security 6.2 * 2 = 12.4

Medicare = 1.45 * 2 = 2.90

Total = 12.4 + 2.90 = 15.30 %

Thus total FICA = 42800 * 15.3 % = 6548.4 ................. Select - Option - A

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