Tim's gross pay for this month is $8950. His gross year-to-date pay, prior to this month, totaled $111,500. What is the amount of FICA tax withheld from Tim's pay for this month? (Assume an OASDI rate of 6.2%, applicable on the first $118,500 earnings, and a Medicare rate of 1.45%, applicable on all earnings. Do not round any intermediate calculations, and round your final answer to the nearest cent.)
A) $434.00
B) $129.78
C) $563.78
D) $554.90
C) $563.78
FICA
OASDI Medicare
Earnings subject to tax $118,500 No Max
Less: Earnings prior to current month 111,500 -
Current pay subject to tax 6,500 8950
Tax rate × 6.2% × 1.45%
Tax to be withheld from pay-check 403.00 129.78
Total FICA withheld ($403.00 + $129.78) $532.78
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