Prior to the last payroll period of the calendar year, the cumulative earnings of Employee A were $98,000. The earnings for the last payroll period for the year, which will be paid on December 30, are $2,500. The Social security tax rate is 6% on the first $100,000 of annual earnings, and the Medicare tax rate is 1.5% on all earnings. What is the employer's total FICA tax on the salary? Select one: Oa. $187.50 Ob. $18.75 Oc. $157.50 Od. $1,875.00
Prior to the last payroll period of the calendar year, the cumulative earnings of Employee A were $98,000. The earnings for the last payroll period for the year, which will be paid on December 30, are $2,500. The Social security tax rate is 6% on the first $100,000 of annual earnings, and the Medicare tax rate is 1.5% on all earnings. What is the employer's total FICA tax on the salary? Select one: Oa. $187.50 Ob. $18.75 Oc. $157.50 Od. $1,875.00
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 1SEA: CALCULATION AND JOURNAL ENTRY FOR EMPLOYER PAYROLL TAXES Portions of the payroll register for...
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![Prior to the last payroll period of the calendar year, the cumulative earnings of Employee A
were $98,000. The earnings for the last payroll period for the year, which will be paid on
December 30, are $2,500. The Social security tax rate is 6% on the first $100,000 of annual
earnings, and the Medicare tax rate is 1.5% on all earnings. What is the employer's total
FICA tax on the salary?
Select one:
Oa. $187.50
Ob. $18.75
Oc. $157.50
O d. $1,875.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87c896c5-a2bd-45d5-a2d4-a5c074e3a351%2F4d7e39d1-3cff-4c7e-9102-75075b8a5658%2Fh700kb_processed.png&w=3840&q=75)
Transcribed Image Text:Prior to the last payroll period of the calendar year, the cumulative earnings of Employee A
were $98,000. The earnings for the last payroll period for the year, which will be paid on
December 30, are $2,500. The Social security tax rate is 6% on the first $100,000 of annual
earnings, and the Medicare tax rate is 1.5% on all earnings. What is the employer's total
FICA tax on the salary?
Select one:
Oa. $187.50
Ob. $18.75
Oc. $157.50
O d. $1,875.00
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