Question

Mike Gundy is a college football coach making a salary of $2,400,000 a year ($200,000 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the FICA maximum base amount is $106,800, how much will be withheld during the year for the coach's Social Security and Medicare.

Answer 1

Answer: $41,421.6 will be withheld during the year for the coach's Social Security and Medicare

Explanation:

Given that,

yearly salary of Mike = 24,00,000

So,

withheld amount for mike's Social Security and Medicare in a year = 6.2% of maximum base amount + 1.45% of his annual salary

= $\frac{6.2}{100} \times 1,06,800$ + $\frac{1.45}{100} \times 24,00,000$

= 6621.6+34800

= $41,421.6 (approx.)