Michele Baker's cumulative wages for the year not including the current pay period total $118,000. Calculate the
Question:
Michele Baker's cumulative wages for the year not including the current pay period total $118,000. Calculate the amount of Social Security and Medicare to be withheld from Baker's current gross pay of $3,500.
Employee Rates: SS= 6.2% Medicare 1.45%
The required Employee deduction for Social Security (SS) is 6.2% OASDI (Old Age Survivors and Disability Insurance) of wages earned, to a maximum of $97,500 and 1.45% HI (Hospital Insurance, commonly known as "Medicare" (M) for all earnings.
Employer Rates: SS= 12.4%, Medicare 2.9%
The required Employer deduction for Social Security (SS) is 12.4% OASDI (Old Age Survivors and Disability Insurance) of wages earned, to a maximum of $97,500 and 2.9% HI (Hospital Insurance, commonly known as "Medicare" (M) for all earnings.
Principles of Taxation for Business and Investment Planning 2016 Edition
ISBN: 9781259549250
19th edition
Authors: Sally Jones, Shelley Rhoades Catanach