Question: I don't understand. What are base amounts for social security? What does no maximum mean? What is a maximum base amount? Also want to know
I don't understand. What are base amounts for social security? What does "no maximum" mean? What is a "maximum base amount"?
Also want to know why its only january?
The question reads:
Supposed to college football coach makes a base salary of $2,400,000 a year or $200,000 per month. Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no Maxximum. Assuming the Social Security maximum base amount is $142,800 through what month will Social Security be withheld?
A. Social Security will be only withheld in January.
B. Social Security will be withheld through the month of March.
C. Social Security will be withheld through the entire year.
D. Social Security will be withheld through the month of June.
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