Answer:
Explanation:
To calculate the amount of FICA (Federal Insurance Contributions Act) withheld on the gross pay, you can follow these steps:
1. Calculate the FICA withholding amount based on the given rate of 7.65% and the maximum taxable income of $45,000.
FICA withholding amount = Gross Pay * FICA Rate
2. Check if the gross pay exceeds the maximum taxable income. If it does, use the maximum taxable income as the basis for the calculation.
3. Subtract any deductions (if applicable) from the calculated FICA withholding amount.
Given data:
FICA Rate = 7.65% (0.0765)
Maximum Taxable Income = $45,000
Gross Pay = $27,860
Let's perform the calculation:
FICA withholding amount = Gross Pay * FICA Rate
FICA withholding amount = $27,860 * 0.0765
FICA withholding amount = $2,132.49
Since the gross pay is less than the maximum taxable income, the FICA withholding amount will be $2,132.49.
Therefore, the amount of FICA withheld on the gross pay of $27,860 is $2,132.49.