For each of the following employees, calculate both the Social Security tax and

Question

For each of the following employees, calculate both the Social Security tax and the Medicare tax for the weekly pay period described:

NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:Bradley Banks' filing status is qualifying widower, and he has earned gross pay of $1,510. Each period he makes a 401(k) contribution of 9% of gross pay and makes a contribution of 3% of gross pay to a flexible spending account. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $212,100.

Social Security tax = $
Medicare tax = $

2:Kyle Struck's filing status is single, and he has earned gross pay of $2,410. Each period he makes a 403(b) contribution of 10% of gross pay; and makes a contribution of 3% of gross pay to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $199,400.

Social Security tax = $
Medicare tax = $

3:Sebastian Wayne's filing status is married filing jointly, and he has earned gross pay of $3,940. Each period he makes a 401(k) contribution of 14% of gross pay and contributes $120 to a dependent care flexible spending account. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $91,500.

Social Security tax = $
Medicare tax = $

4:Lukas Douglas' filing status is married filing separately, and he has earned gross pay of $1,950. Each period he makes a 403(b) contribution of 13% of gross pay and contributes $95 to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $126,700.

Social Security tax = $
Medicare tax = $

Explanation / Answer

Social Security Tax is applicable @ 6.2 % of earnings up to the maximum of $ 127,500.

Medicare Tax is applicable @ 1.45% of the earnings.

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1 Employer Payroll Taxes Earnings Subject to Tax Tax Rate Tax Amount Social Security Tax $               -   6.20% $                 -   Medicare Tax $ 1,510.00 1.45% $          21.90

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