Determine the total annual FICA tax for an annual salary of $38,480. (FICA is 7.65%)

Convert 7.65% to a decimal: 0.0765. Then multiply the annual salary by the tax rate: $38,480 × 0.0765 = $2,943.72. Therefore, the total annual FICA tax is $2,943.72, which is choice D.

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