Question

For each of the following employees, calculate both the Social Security tax and the Medicare tax for the weekly pay period described:

NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:Bradley Banks' filing status is qualifying widower, and he has earned gross pay of $1,510. Each period he makes a 401(k) contribution of 9% of gross pay and makes a contribution of 3% of gross pay to a flexible spending account. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $212,100.

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 $3,940. Each period he makes a 401(k) contribution of 14% of gross pay and contributes $120 to a dependent care flexible spending account. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $91,500.

Social Security tax = $
Medicare tax = $

4:Lukas Douglas' filing status is married filing separately, and he has earned gross pay of $1,950. Each period he makes a 403(b) contribution of 13% of gross pay and contributes $95 to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $126,700.

Social Security tax = $
Medicare tax = $

Answer 1

Social Security Tax is applicable @ 6.2 % of earnings up to the maximum of $ 127,500.

Medicare Tax is applicable @ 1.45% of the earnings.

1
Employer Payroll Taxes	Earnings Subject to Tax	Tax Rate	Tax Amount
Social Security Tax	$               -	6.20%	$                 -
Medicare Tax	$ 1,510.00	1.45%	$          21.90

2
Employer Payroll Taxes	Earnings Subject to Tax	Tax Rate	Tax Amount
Social Security Tax	$               -	6.20%	$                 -
Medicare Tax	$ 2,410.00	1.45%	$          34.95

3
Employer Payroll Taxes	Earnings Subject to Tax	Tax Rate	Tax Amount
Social Security Tax	$ 3,940.00	6.20%	$        244.28
Medicare Tax	$ 3,940.00	1.45%	$          57.13

4
Employer Payroll Taxes	Earnings Subject to Tax	Tax Rate	Tax Amount
Social Security Tax	$     800.00	6.20%	$          49.60
Medicare Tax	$ 1,950.00	1.45%	$          28.28

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