Answer:$27,234
Step-by-step explanation:
Federal Insurance Contributions Act(FICA) is a United States federal payroll tax. It is deducted from every paycheck. As one works and pay FICA taxes, the person earn credits for Social Security benefits. The FICA rate is 7.65%.
Since ABC Bookstore has an annual payroll of $356,000, the company's FICA will be 7.65% of $356,000 which will be:
= 7.65% of $356,000
= 7.65/100 × $356,000
= 0.0765 × $356,000
= $27,234
