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The Federal Insurance Contributions Act ( FICA ) requires employers to pay Social Security and Medicare for each employee. For the year 2 0 0

The Federal Insurance Contributions Act (FICA) requires employers to pay Social Security and Medicare for each employee. For the year 2006, the employer pays Social Security of 6.2% of each employee's first $94,200 in wages. The employee is required to match these payments. Determine the Social Security paid by the employer during the year for the typical laborer earning $35,000 per year. This laborer pays $150 per month for health insurance, which is not subject to Social Security. Use the rates for the year 2006.

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