An employee earned $42,400 working for an employer in the current year. The current rate for FICA Social Security is 6.2% payable on earnings up to $118,500 maximum per year and the rate for FICA Medicare 1.45%. The employer's total FICA payroll tax for this employee is:

Multiple Choice

• $6,487.20.

• $2,628.80.

• $3,243.60.

• Zero, since the FICA tax is a deduction from an employee's pay, and not an employer tax.

• $614.80.