The chief executive officer earns $20,700 per month. As of May 31, her gross pay was $103,500. The tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7000 of an employee's pay. What is the amount of FICA - Medicare withheld from this employee for the month of June?

A. $7604.15
B. $641.70
C. $300.15
D. $277.64
E. $1283.40


Answer: C

Business

You might also like to view...

Which of the following may a prosecutor consider when making a decision on whether to prosecute?

a. race b. gender c. religion d. expense of prosecution

Business

Treasury stock is ________

A) a contra equity account B) a contra asset account C) a liability account D) an asset account

Business

On October 15, a company received $15,000 cash as a down payment on a consulting contract. The amount was credited to Unearned Consulting Revenue. By October 31, 10% of the services required by the contract were completed. The company will record consulting revenue of $1,500 from this contract for October.

Answer the following statement true (T) or false (F)

Business

A dividend payable in stock (a stock dividend)

A) is better than a cash dividend because you receive more shares of stock. B) is usually associated with a company in bankruptcy. C) has little impact on your net worth; although you receive additional shares, the market value of each share you own decreases. D) allows you to exchange shares of common stock for shares of preferred stock.

Business