Prior to the last payroll period of the calendar year, the cumulative earnings of Employee A were $98,000. The earnings for the last payroll period for the year, which will be paid on December 30, are $2,500. The Social security tax rate is 6% on the first $100,000 of annual earnings, and the Medicare tax rate is 1.5% on all earnings. What is the employer's total FICA tax on the salary? Select one: Oa. $187.50 Ob. $18.75 Oc. $157.50 Od. $1,875.00

Prior to the last payroll period of the calendar year, the cumulative earnings of Employee A were $98,000. The earnings for the last payroll period for the year, which will be paid on December 30, are $2,500. The Social security tax rate is 6% on the first $100,000 of annual earnings, and the Medicare tax rate is 1.5% on all earnings. What is the employer's total FICA tax on the salary? Select one: Oa. $187.50 Ob. $18.75 Oc. $157.50 Od. $1,875.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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