Assuming a FICA Tax Rate of 7

Multiple Choice

Assuming a FICA tax rate of 7.65% on the first $132,900 in wages and 1.45% on wages in excess of $132,900 and a federal income tax rate of 20% on all wages, what would be an employee's net pay for the year if he earned $180,000? Round all calculations to the nearest dollar.

A) $134,867
B) $133,953
C) $144,000
D) $133,150