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Question
Davis and Thompson have earnings of $850 each. The social security tax rate is 6.0%, and the Medicare tax rate is 1.5%. Assuming that these are the only two employees and that neither have reached the maximum earnings subject to FICA taxes, what will be the employer's total FICA taxes for this payroll period?
a. $102.00
b. $127.50
c. $96.00
d. $25.50
Answer
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