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 13,85027,650$15,300
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:
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Convert the FICA tax rate from a percentage to a decimal by dividing it by 100. So, 7.65% becomes 0.0765.
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Multiply the total payments by the FICA tax rate. So, 7,650.
Therefore, the total amount due to the government for FICA taxes is 7,650.
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