This Question 1 pt 1 of 25 1 complete This Quiz 25 pts poss

This Question: 1 pt 1 of 25 (1 complete) ? This Quiz: 25 pts possible Eric\'s gross pay for the week is $2,550. His deduction for federal income tax is based on a rate of 20%. He has no voluntary deductions. His yearly pay is under the limit for OASDI What is the amount of FICA tax that will be withheld from Eric\'s a? Assume a FICA OASD Ta·of 6 2% and FICA Medicare Tax of 45% (Round any intermediate calculations to two decimal places, and your final answer to the nearest cent. O A. $195.08 ?B. $510.00 O C. $161.90 OD. $705.08

Solution

Amount of FICA tax to be withheld: FICA-OASDI Tax 158.1 =2550*6.2% FICA-Medicare Tax 36.98 =2550*1.45% Total FICA tax withheld 195.08 Option A is correct