<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>
The number is 1. 1 multiplied by 100 gives 100 as answer. Lisa claims that <span>when multiplying any number between 0 and 10 by 100, the product is greater than 100. In this case the answer is equal to 100 not greater than 100.
So this proof shows that Lisa's claim is not correct. </span>
