Question 13 • Financial Math - MA2007
Social Security tax is 6.2% of earnings up to the $106,800 maximum: $106,800 × 0.062 = $6,621.60. Medicare tax is 1.45% of the full $165,000 salary: $165,000 × 0.0145 = $2,392.50. Together, the annual FICA tax is $9,014.10, choice b.
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