An Employee Earned $47,000 During the Year Working for an Employer

Multiple Choice

An employee earned $47,000 during the year working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee's annual FICA taxes amount is:

A) $681.50.
B) $2,914.00.
C) $3,595.50.
D) $7,191.00.
E) Zero, since the employee's pay exceeds the FICA limit.