<span>The Federal Insurance Contributions Act (FICA) requires employers to withhold a certain percentage of an employee's income as tax. The categories are:
6.2% as social security tax
1.45% as Medicare tax
0.9% as Medicare surtax for employees earning more than $200,000
In this case, the percentage of tax applied will be 6.2 + 1.45 = 7.65%
The FICA tax will be 165,000 * 0.0765
FICA tax = $12,622.50</span>
Determine the total annual FICA tax for an annual salary of $165,000. Use $106,800 for maximum taxable earnings.<span><span>a.$901.41</span><span>b.$9,014.10</span><span>c.$1,262.25</span><span>d.$12,622.50</span><span> <span> its B </span></span></span>
