Question

Crystal Huggins is an executive in Bonwire Company and was paid $149,000 in 2019.

Calculate the following:

Social security withheld from her wages_________

Medicare withheld from her wages ____________

Social security paid by her employer ___________

Medicare paid by her employer________________

FUTA tax withheld from her wages ____________

FUTA tax paid by her employer_______________

Answer 1

Based on the information available in the question, we can calculate the following for Crystal Huggins:-

1.) Social Security withheld from her wages :- $132,900 * 6.2% = $8,240 (rounded)

2.) Medicare withheld from her wages = $149,000 * 1.45% = $2,161 (Rounded)

3.) Social security paid by her employer = $132,900 * 6.2% = $8,240 (rounded)

4.) Medicare withheld paid by her employer = $149,000 * 1.45% = $2,161(Rounded)

5.) FUTA tax withheld from her wages = "Nil" because FUTA Tax is an unemployment tax paid by the employer only.

6.) FUTA tax paid by her employer = $7,000 * 6% = $420.

Please note that the for Social security tax, the maximum amount upto which the tax needs to be paid is $132,900 for 2019. Hence we would calculate the employer and employee percentages of 6.2% each upto the maximum wages of $132,900.

FUTA tax is paid by the employer on the first $7,000 of wages paid to the employee.