An employee earned $42,500 working for an employer in the current year. The current rate for Federal Insurance Contributions Act (FICA) Social Security is 6.2% payable on earnings up to $137,700 maximum per year, and the rate for Federal Insurance Contributions Act (FICA) Medicare 1.45%. The employer's total Federal Insurance Contributions Act (FICA) payroll tax for this employee is:

$6,502.50.

$0, since the Federal Insurance Contributions Act (FICA) tax is only deducted from an employee's pay.

$2,635.00.

$3,251.25.

$616.25.