Michael Miller is paid twice a month and had total gross earnings as of 10/15 of $116,800.
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Question:
Michael Miller is paid twice a month and had total gross earnings as of 10/15 of $116,800. His gross earnings for the period ending 10/31 were $6,000. If social security taxes are 6.2% on a maximum earnings of $122,700 per year and Medicare tax is 1.45% on all earnings, how much medicare tax will be paid by Michael and how much will be paid by his employer for the period ending 10/31?
Michael will pay $87.00 and his employer will also pay $87.00.
Michael will pay $87.00 and his employer is not required to pay any social security tax.
Michael will pay $24.65 and his employer will also pay $24.65.
Michael will pay $24.65 and his employer will pay $87.00.
Related Book For
Essentials of Corporate Finance
ISBN: 978-1118868416
1st edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
Posted Date: