The chief executive officer earns $20,000 per month. As of June 30, her gross pay was $120,000. 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 $7,000 of an employee's pay. What is the amount of FICA - Medicare withheld from this employee for the month of July?
A. $290.00
B. $7,347.00
C. $1,147.00
D. $1,240.00
E. $268.25
Answer: A
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