Davis and Thompson Have Earnings of $850 Each

Multiple Choice

Davis and Thompson have earnings of $850 each. The social security tax rate is 6.0%, and the Medicare tax rate is 1.5%. Assuming that the payroll will be paid on December 29, what will be the employer's total FICA tax for this payroll period?

A) $102.00
B) $127.50
C) $96.00
D) $25.50