Answer:
Explanation:
Since we know that the current Social Security tax is 12.4% with employees and employers each paying 6.2%; and the Medicare tax rate is 2.9%. Employers and employees split that cost with each paying 1.45%
a. Social Security Tax
Wage per month = 280$
social security tax = ( wage per month x number of months worked) x tax rate
social security tax = ( 280 x 9 ) x 6.20%
social security tax = 156.24 $
b. Medicare Tax
Medicare tax = ( wage per month x number of months worked) x tax rate
Medicare tax = (280 x 9) x 1.45%
Medicare tax = 36.54$
c. Social security and medicare tax withheld
Social Security and Medicare tax = ( wage per month x number of months worked) x tax rate
Social Security and Medicare tax = (280 x 9) x (6.2 + 1.45)
Social Security and Medicare tax = (280 x 9) x 7.65
Social Security and Medicare tax = 192.78$
d. Sally should withhold for social security and medicare tax of 192.78$
