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

Answer 1

To calculate Bill's FICA tax withholding, you multiply his weekly earnings by the FICA tax rate:

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

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

Now, substitute the values into the formula:

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

Calculating this gives:

\[
\text{FICA tax} = 24.92
\]

Therefore, the correct answer is:

**$24.92**