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)

$27.92

$26.42

$25.28

$24.92

Answer 1

To calculate the FICA tax that should be withheld from Bill's earnings, you can use the following formula:

\[
\text{FICA Tax} = \text{Earnings} \times \text{FICA Rate}
\]

Given:
- Earnings = $325.78
- FICA Rate = 7.65% = 0.0765

Now, plug in the values:

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

Calculating that:

\[
\text{FICA Tax} = 325.78 \times 0.0765 \approx 24.92
\]

Therefore, the amount of FICA tax that should be withheld is **$24.92**.