Dakota had $11,211.20 in a savings account with simple interest. She had opened the account with $8,008 exactly 5 years earlier.
1 answer:
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Answer:
Medicare tax to be paid by Michael =$0
Medicare tax to be paid by the employer = $1780.6
Step-by-step explanation:
Total gross earnings as of 10/15 = $116800
Gross earnings for the period ending 10/31 = $6000
Since Michael Miller is paid twice a month, the gross earnings for the period ending 10/15 = $6000
Gross earnings for the month of October = 6000+6000
= $12000
Total gross earnings as of 10/31 = 116800 + 6000
= $122800
Security tax rate = 6.25%
So, security tax to be paid by Michael = 6.25% of 122800
= *122800
= 0.0625*122800
= $7675
Earnings of Michael after deducting the security tax= 122800 - 7675
= $115125
The medicare tax rate will be 1.45% on $122,700 earning or more.
As Michael's earning after the payment of security tax is $115125, so Michael does not need to pay any medicare tax.
So, Medicare tax to be paid by Michael =$0
Medicare tax to be paid by the employer = 1.45% of 122,800
= *122800
= 0.0145*122800
= $1780.6