Answer:
1) social security taxes = (accumulated earnings - social security maximum) x 6.2% = ($139,370 - $128,070) x 6.2% = <u>$700.60</u>
2) medicare taxes = monthly earnings x 1.45% = $11,300 x 1.45% = <u>$163.85</u>
3) in order to calculate federal income taxes, I used the 2019 tables and allowance:
2019 allowance = $350 per person
monthly paycheck between $7,333 - $13,710
must withhold $1,198.46 plus 24% in excess of $7,333
federal income taxes under percentage method = $11,300 - $350 (1 monthly allowance 2019) = $10,950
$1,198.46 + [($10,950 - $7,333) x 24%] = $1,198.46 + $868.08 = <u>$2,066.54</u>
For 2020, there are no more personal allowances.
