Sue Soop is a waitress. She worked for one restaurant during the year. She received her W-2 and it shows tips that her employer allocated to her of $400.00 in box 8. In addition to the $400 allocated to her, she collected another $150 that she did not report to her employer, $15 of which was collected during the month of October when she only worked one day due to an illness. She did not collect less than $20.00 in tips during any other month of the year. She does not have records that prove a dollar amount different from the amount allocated to her. She also reported $800 as tips that have been added to her earnings in box 1 of her W-2. Her total wages/earnings for the year were $14,200, including the allocated and unreported tips. How much additional social security and Medicare tax must she pay? Select one: 

a. $33 

b. $15 

c. $0 

d. $41

Answer rating: 100% (QA)

The correct answer is a 33 Heres how to calculate the additional social security and Medicare tax Su... View the full answer