Question

Mike Samson is a college football coach making a base salary of $651,600 a year ($54,300 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.Compute how much will be withheld during the year for Coach Samson’s Social Security and Medicare.
What additional amount will the employer need to contribute towards FICA taxes?

Answer 1

Answer:

$7960.80; $9948.20 ; $17,409

Explanation:

Given the following :

Coach base salary = $651,600 ($54,300/month)

Social security tax = 6.2% upto maximum base amount

Medicare tax = 1.45% with no maximum

FICA base amount = $128,400

Coach Samson Social security and Medicare tax:

Social Security tax amount = 6.2% of $128,400

= 0.062 * $128,400 = $7,960.80

Medicare tax amount :

1.45% of $651,600

(1.45 / 100) * $651,600

0.0145 * $651,600

= $9948.20

Additional amount towards FICA taxes:

$7,960.80 + $9,948.20 = $17,409