determine the total annual fica tax for an annual salary of $38,480. (fica is 7.65%)\na. $294.37\nb…

determine the total annual fica tax for an annual salary of $38,480. (fica is 7.65%)\na. $294.37\nb. $717.96\nc. $2,385.76\nd. $2,943.72\n\nplease select the best answer from the choices provided\n\n○ a\n○ b\n○ c\n○ d

determine the total annual fica tax for an annual salary of $38,480. (fica is 7.65%)\na. $294.37\nb. $717.96\nc. $2,385.76\nd. $2,943.72\n\nplease select the best answer from the choices provided\n\n○ a\n○ b\n○ c\n○ d

Answer

Explanation:

Step1: Recall FICA tax formula

FICA tax = Annual salary × FICA rate. The FICA rate is 7.65% or 0.0765 in decimal.

Step2: Substitute values

Annual salary = $38,480, rate = 0.0765. So, FICA tax = ( 38480 \times 0.0765 ).

Step3: Calculate the product

( 38480 \times 0.0765 = 38480 \times \frac{765}{10000} = \frac{38480 \times 765}{10000} ). First, calculate ( 38480 \times 765 ): ( 38480 \times 700 = 26,936,000 ) ( 38480 \times 60 = 2,308,800 ) ( 38480 \times 5 = 192,400 ) Sum: ( 26,936,000 + 2,308,800 + 192,400 = 29,437,200 ) Then divide by 10,000: ( \frac{29,437,200}{10,000} = 2943.72 )

Answer:

d. $2,943.72