Answer:
The FICA tax is the Federal Insurance Contributions Act tax, including Social Security and Medicare taxes. To determine the amount of FICA tax withheld from Sarah's June 10 paycheck, we need to consider her biweekly gross pay and the amount withheld for the wage advance repayment.
First, we need to calculate Sarah's total gross pay for the year. Since her biweekly gross pay is $2,500, we can multiply this by the number of pay periods in a year (52 weeks/2 = 26 pay periods) to find her annual gross pay:
$2,500 x 26 = $65,000
Next, we need to determine the wage advance repayment amount for the year. Sarah had $500 withheld on June 10, but we know that she fully intends to repay the $2,000 wage advance in the same year (2022). So, we can subtract the $500 withheld from the $2,000 advance to find the remaining amount to be repaid:
$2,000 - $500 = $1,500
Now, we can calculate the FICA tax using the Social Security and Medicare tax rates for 2022. The Social Security tax rate is 6.2% on wages up to $142,800, and the Medicare tax rate is 1.45% on all wages.
First, we calculate the Social Security tax withheld based on the annual gross pay and the Social Security tax rate:
$65,000 x 0.062 = $4,030
Next, we calculate the Medicare tax withheld based on the annual gross pay and the Medicare tax rate:
$65,000 x 0.0145 = $942.50
Finally, we subtract the total wage advance repayment amount ($1,500) from the calculated FICA tax:
$4,030 + $942.50 - $1,500 = $3,472.50
Since the question asks for the FICA tax withheld from the June 10 paycheck, we divide the annual FICA tax by the number of pay periods in a year to find the amount withheld per pay period:
$3,472.50 / 26 = $133.56 (approximately)
Therefore, based on the given information, the employer should withhold FICA tax of approximately $133.56 from Sarah's June 10 paycheck.
Please note that the given answer choices (a, b, c, d) are not provided, so it is not possible to provide a specific letter as the correct answer.
Step-by-step explanation: