Certified Payroll Professional Practice Exam 2026 – Your All-in-One Guide to Exam Success

The correct answer reflecting the combined FICA tax rate for Social Security and Medicare is 7.65%. This rate consists of two components: the Social Security tax, which is 6.2% on earnings up to a certain limit (the wage base maximum), and the Medicare tax, which is 1.45% on all earnings without a cap. When these two rates are added together, the total becomes 7.65%.

Understanding this combined rate is critical for payroll professionals as it directly impacts the calculations for withholding on employees' wages, as well as the employer's matching contributions for FICA taxes. This knowledge is essential in ensuring compliance with federal payroll tax regulations and accurately processing payroll.