Dr. Josef Young earns an adjusted gross weekly income of $2,517. How much Social Security tax should be withheld the first week of the year? How much Medicare tax should be withheld? The Social Security tax rate is 6.2% from earnings to be taxed to a maximum annual wage of $118,500. The Medicare tax rate is 1.45% from all earnings to a maximum annual wage of $200,000. The Social Security tax is S (Type an integer or a decimal. Round to the nearest cent as needed.) The Medicare tax is $ (Type an integer or a decimal. Round to the nearest cent as needed.)
Dr. Josef Young earns an adjusted gross weekly income of $2,517. How much Social Security tax should be withheld the first week of the year? How much Medicare tax should be withheld? The Social Security tax rate is 6.2% from earnings to be taxed to a maximum annual wage of $118,500. The Medicare tax rate is 1.45% from all earnings to a maximum annual wage of $200,000. The Social Security tax is S (Type an integer or a decimal. Round to the nearest cent as needed.) The Medicare tax is $ (Type an integer or a decimal. Round to the nearest cent as needed.)
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 2PA
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Transcribed Image Text:Dr. Josef Young earns an adjusted gross weekly income of $2,517. How much Social Security tax should be withheld the first week of the year? How much Medicare
tax should be withheld? The Social Security tax rate is 6.2% from earnings to be taxed to a maximum annual wage of $118,500. The Medicare tax rate is 1.45% from all
earnings to a maximum annual wage of $200,000.
The Social Security tax is $
(Type an integer or a decimal. Round to the nearest cent as needed.)
The Medicare tax is $.
(Type an integer or a decimal. Round to the nearest cent as needed.)
Expert Solution
Step 1
Formula:
Social security tax = Gross weekly income x social security tax rate
Multiplying social security tax rate with Gross weekly income derives the Social security tax amount
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