Question

Bill’s FICA tax is 7.65% of his earnings of 325.78 per week. How much FICA tax should his employer withhold?

(1 point)
Responses

$27.92

$27.92

$26.42

$26.42

$25.28

$25.28

$24.92

$24.92

Answer 1

To calculate Bill's FICA tax, you can use the formula:

\[
\text{FICA tax} = \text{Earnings} \times \text{FICA tax rate}
\]

Given:
- Earnings = $325.78
- FICA tax rate = 7.65% = 0.0765 (as a decimal)

Now plug in the values:

\[
\text{FICA tax} = 325.78 \times 0.0765
\]

Calculating this:

\[
\text{FICA tax} = 24.89207
\]

Rounding to two decimal places, the FICA tax is approximately:

\[
\text{FICA tax} \approx 24.89
\]

Since the closest option from the responses provided is $24.92, that would be the correct answer.

So, the answer is:

**$24.92**