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A company has total payments for the month of March for its 20 employees of $100,000. The FICA tax rate (Social Security and Medicare) is 7.65%. What is the total amount due to the government for FICA taxes?Multiple Choice$13,850$7,650$27,650$15,300

Question

A company has total payments for the month of March for its 20 employees of 100,000.TheFICAtaxrate(SocialSecurityandMedicare)is7.65100,000. The FICA tax rate (Social Security and Medicare) is 7.65%. What is the total amount due to the government for FICA taxes?Multiple Choice13,8507,6507,65027,650$15,300

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Solution

To calculate the total amount due to the government for FICA taxes, you need to multiply the total payments by the FICA tax rate.

Here's how you do it:

  1. Convert the FICA tax rate from a percentage to a decimal by dividing it by 100. So, 7.65% becomes 0.0765.

  2. Multiply the total payments by the FICA tax rate. So, 100,0000.0765=100,000 * 0.0765 = 7,650.

Therefore, the total amount due to the government for FICA taxes is 7,650.So,thecorrectansweris7,650. So, the correct answer is 7,650.

This problem has been solved

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