Determine the total annual FICA tax for an annual salary of $38,480. (FICA is 7.65%)
a.
$294.37
b.
$717.96
c.
$2,385.76
d.
$2,943.72
To determine the total annual FICA tax, we need to calculate 7.65% of the annual salary of $38,480.
FICA tax = 0.0765 x $38,480 = $2,943.72
Therefore, option d. $2,943.72 is the correct answer.
To determine the total annual FICA tax, we need to multiply the annual salary by the FICA rate of 7.65%.
FICA tax = Annual salary x FICA rate
Substituting the given values:
FICA tax = $38,480 x 0.0765
FICA tax = $2,943.72
Therefore, the correct answer is d. $2,943.72.