Question

Mike Samson is a college football coach making a base salary of $650,400 a year ($54,200 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 base amount is $128,400. 1. Compute how much will be withheld during the year for Coach Samson’s Social Security and Medicare.

Answer 1

Answer:

The amount that will be withheld during the year for Coach Samson’s is $7,960.80 for Social Security and $9,430.80 Medicare.

Explanation:

In order to calculate how much will be withheld during the year for Coach Samson’s Social Security and Medicare, we would have to make the following calculations:

Accoring to the given data we have that the FICA base amount is $128,400

Therefore, Ammount to be withheld for Social Security= $128,400× 6.2%

Ammount to be withheld for Social Security=$7,960.80

Ammount to be withheld for Medicare= $650,400× 1.45%

Ammount to be withheld for Medicare= $9,430.80

The amount that will be withheld during the year for Coach Samson’s is $7,960.80 for Social Security and $9,430.80 Medicare.