Davis Reyes is the accountant for Heads Up Hat Corporation. As he prepares the payroll for the semimonthly pay period ending December 15, he notices that some of the year-to-date executives’ salaries have exceeded $200,000. What payroll tax responsibilities does Heads Up Hat Corporation have, especially regarding FICA taxes?

a. Social Security tax must be deducted from the executives’ pay for those under the cap and matched by the corporation.

b. An additional 0.9 percent Medicare tax must be deducted from the employees’ pay for those over the base and matched by the corporation.

c. An additional 0.9 percent Medicare tax must be deducted from the employee pay for those over the base, but no corporate match is required.

d. Medicare taxes should be deducted from all employees’ pay and matched by the corporation.