The chief executive officer earns $21,000 per month. As of May 31, her gross pay was $105,000. The tax rate for Social Security is 6.2% of the first $127,200 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 4.4%. Both unemployment taxes are applied to the first $7000 of an employee's pay. What is the amount of FICA- Social Security withheld from this employee for the month of June?
A. $1376.40
B. $1537.60
C. $680.60
D. $7347.00
E. $1630.60
Answer: A
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The FDIC insures all accounts in each member bank for up to:
a. $150,000 b. $1 million c. $100,000 d. $10,000 e. $500,000
Congress has the power to "lay and collect Taxes." When the Supreme Court reviews the taxing activity of Congress, it:
a. closely inspects Congressional actions for evidence of "discriminatory intent" b. limits what Congress may do to protect citizens from violations of the Sixth Amendment c. limits what Congress may do because the Court controls Congressional spending d. rarely questions Congressional taxing schemes e. is prohibited by the Constitution from questioning Congressional tax schemes
During the current year, Margie earned wage income of $300,000. If Margie is single, which of the following statements regarding her Medicare tax liability is true?
A. Margie will owe the regular 1.45 percent Medicare tax on her entire wage income and the additional .9 percent Medicare tax only on her wage income in excess of $200,000. B. Margie will owe the regular 1.45 percent Medicare tax on her entire wage income and the additional .9 percent Medicare tax only on her wage income in excess of $250,000. C. Margie's employer is required to withhold both the regular Medicare tax but does not withhold the additional .9 percent Medicare tax. D. Margie will owe both the regular 1.45 percent Medicare tax and the additional .9 percent Medicare tax on her entire wage income.