Question

An MA earns $15.00/hr and works 40 hrs during a 1-week pay period. Federal taxes for FICA are withheld at 7.65%. How much money will be withheld from her gross earnings for a 1-week pay period?

a) $45.90
b) $61.20
c) $76.50
d) $91.80

Answer 1

By multiplying the MA's hourly wage by the hours worked and then applying the FICA tax rate, we calculated the FICA withholding to be $45.90 for a 1-week pay period, which matches option (a).

Step-by-step explanation:

To calculate the amount of money that will be withheld from an MA's gross earnings due to Federal taxes for FICA at a rate of 7.65%, we need to follow these steps:

For an hourly wage of $15.00 and a 40-hour work week, the gross earnings would be:

Gross Earnings = Hourly Wage × Hours Worked = $15.00/hour × 40 hours = $600.00

Now, applying the FICA tax rate:

FICA withholding = Gross Earnings × FICA Rate = $600.00 × 7.65% = $45.90

Therefore, the amount of money that will be withheld from the gross earnings for a 1-week pay period for FICA is $45.90, which corresponds to option (a) $45.90.