What is the FICA tax rate applied to gross wages in the calculation?

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Multiple Choice

What is the FICA tax rate applied to gross wages in the calculation?

Explanation:
FICA tax rate on gross wages is the combined withholding for Social Security and Medicare. For most employees this totals 7.65%: 6.2% goes to Social Security (up to the wage base) plus 1.45% goes to Medicare (no wage cap). An additional 0.9% Medicare tax can apply to higher earners, but that is separate from the standard 7.65% rate. Employers also pay a matching 7.65%, making the total FICA contribution 15.3% in typical payroll calculations.

FICA tax rate on gross wages is the combined withholding for Social Security and Medicare. For most employees this totals 7.65%: 6.2% goes to Social Security (up to the wage base) plus 1.45% goes to Medicare (no wage cap). An additional 0.9% Medicare tax can apply to higher earners, but that is separate from the standard 7.65% rate. Employers also pay a matching 7.65%, making the total FICA contribution 15.3% in typical payroll calculations.

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