Question

1: Bradley Banks' filing status is qualifying widower, and he has earned gross pay of $1,590. Each period he makes a 401(k) contribution of 5% of gross pay and makes a contribution of 1.5% of gross pay to a flexible spending account. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $211,500.

Social Security tax = $
Medicare tax = $

2: Kyle Struck's filing status is single, and he has earned gross pay of $2,410. Each period he makes a 403(b) contribution of 10% of gross pay; and makes a contribution of 3% of gross pay to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $199,400.

Social Security tax = $
Medicare tax = $

3: Sebastian Wayne's filing status is married filing jointly, and he has earned gross pay of $3,820. Each period he makes a 401(k) contribution of 10% of gross pay and contributes $150 to a dependent care flexible spending account. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $92,500.

Social Security tax = $
Medicare tax = $

4: Lukas Douglas' filing status is married filing separately, and he has earned gross pay of $2,150. Each period he makes a 403(b) contribution of 10% of gross pay and contributes $85 to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $127,100.

Social Security tax = $
Medicare tax = $

Answer 1

Answer 1

Taxable Earnings for Social Security Tax = $0 (Prior Period Earnings exceed Wage Base)

Social Security Tax=$0.00 * 6.2% = $0.00

Gross Pay= $1,590.00

Flexible Spending Account = $1,590.00 * 1.5% = $23.85

Taxable Earnings for Medicare Tax = $1,590.00 - $23.85 = $1,566.15

Medicare Tax = $1,566.15 * 2.35% = $36.80

Therefore,

Social Security tax = $0

Medicare tax = $36.80

Answer 2

Taxable Earnings for Social Security Tax = $0 (Prior Period Earnings exceed Wage Base)

Social Security Tax= $0.00 * 6.2% = $0.00

Gross Pay = $2410.00

Cafeteria Plan = $2410.00 * 3% = $72.30

Taxable Earnings for Medicare Tax = $2410.00 - $72.30 = $2337.70

Portion of Taxable Earnings Below

Additional Medicare Wage Base = $200,000.00 - $199400.00 = $600.00

Portion of Taxable Earnings Above

Additional Medicare Wage Base $199400.00 + $2337.70- $200,000.00 = $1,737.70

Medicare Tax($600.00 * 1.45%) + ($1737.70 * 2.35%) = $49.54

Therefore,

Social Security tax = $0

Medicare tax = $49.54

Answer 3

Taxable Earnings for Social Security Tax= $0 (Prior Period Earnings exceed Wage Base)

Social Security Tax =$0.00 * 6.2% = $0.00

Gross Pay=$3,820.00

Dependent Card Flexible Spending Account =$150.00Taxable Earnings for Medicare Tax =$3820.00 - $150.00 = $3,670.00

Medicare Tax = $3,670.00 * 1.45% = $53.22

Therefore,

Social Security tax = $0

Medicare tax = $53.22

Answer 4

Taxable Earnings for Social Security Tax =$0 (Prior Period Earnings exceed Wage Base)

Social Security Tax =$0.00 * 6.2% = $0

Gross Pay = $2,150.00

Cafeteria Plan = $85.00

Taxable Earnings =$2,150.00 = $85.00 = $2,065.00

Medicare Tax =$2,065.00 * 2.35% = $48.53

Therefore,

Social Security tax = $0

Medicare tax = $48.53