Determine the total annual FICA tax for an annual salary of $165,000. Use $106,800 for maximum taxable earnings.

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.

AI-written and checked against the verified answer.