An employee earned $37,000 during the year working for an employer when the maximum limit for Social Security was $128,400. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is:

A. $2,830.50.
B. $536.50.
C. $8,950.50.
D. $1,757.50.
E. $2,294.00.


Answer: A

Business

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