Assume a Social Security tax rate of 6.2% is applied to maximum earnings of $128,400 and...

 

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Assume a Social Security tax rate of 6.2% is applied to maximum earnings of $128,400 and a Medicare tax rate of 1.45% is applied to all earnings. Calculate the Social Security and Medicare taxes for the following situations: If required, round your answers to the nearest cent. Cumul. Pay Before Current Weekly Payroll $ 21,800 53,100 127,700 127,300 Feedback Current Gross Pay $1,780 4,340 4,110 4,580 Year-to-Date Earnings X Soc. Sec. Maximum $128,400 128,400 128,400 128,400 Amount Over Max. Soc. Sec. Amount Subject to Soc. Sec. Soc. Sec. Tax Withheld Medicare Tax Withheld Check My Work • If the year-to-date earnings < $128,400, then all of the Current Gross Pay is subject to the Social Security tax. • If Cumulative Pay Before Current Gross Pay> $128,400 then none of the current earnings are subject to Social Security Tax. • If Year-to-Date Earnings partially extend beyond the OASDI cap ($128,400), then a portion of the Current Gross Pay is subject to Social Security Tax. For example, assume that Cumulative Pay Before Current Weekly Payroll is $126,125 and that current gross pay is $6,000. Year-to-date earnings would be $132,125 ($126,125 + $6,000). The amount over the social security maximum would be $3,725 ($132,125 - $128,400). The amount amount subject to Social Security tax is difference between the OASDI cap ($128,400) and Cumulative Pay Before Current Weekly Payroll of $126,125, or $2,275. Thus the amount Subject to Soc. Sec. is $2,275, taxed at the OASDI rate of 6.2% which equals $141.05 *Note: Your check figure is $3,725 + $2,275 = $6,000. Assume a Social Security tax rate of 6.2% is applied to maximum earnings of $128,400 and a Medicare tax rate of 1.45% is applied to all earnings. Calculate the Social Security and Medicare taxes for the following situations: If required, round your answers to the nearest cent. Cumul. Pay Before Current Weekly Payroll $ 21,800 53,100 127,700 127,300 Feedback Current Gross Pay $1,780 4,340 4,110 4,580 Year-to-Date Earnings X Soc. Sec. Maximum $128,400 128,400 128,400 128,400 Amount Over Max. Soc. Sec. Amount Subject to Soc. Sec. Soc. Sec. Tax Withheld Medicare Tax Withheld Check My Work • If the year-to-date earnings < $128,400, then all of the Current Gross Pay is subject to the Social Security tax. • If Cumulative Pay Before Current Gross Pay> $128,400 then none of the current earnings are subject to Social Security Tax. • If Year-to-Date Earnings partially extend beyond the OASDI cap ($128,400), then a portion of the Current Gross Pay is subject to Social Security Tax. For example, assume that Cumulative Pay Before Current Weekly Payroll is $126,125 and that current gross pay is $6,000. Year-to-date earnings would be $132,125 ($126,125 + $6,000). The amount over the social security maximum would be $3,725 ($132,125 - $128,400). The amount amount subject to Social Security tax is difference between the OASDI cap ($128,400) and Cumulative Pay Before Current Weekly Payroll of $126,125, or $2,275. Thus the amount Subject to Soc. Sec. is $2,275, taxed at the OASDI rate of 6.2% which equals $141.05 *Note: Your check figure is $3,725 + $2,275 = $6,000.

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To calculate the Social Security and Medicare taxes for the given situations lets go through each case 1 Cumulative Pay Before Current Gross Pay 21800 ... View the full answer