Question

Deduct 6.2% of the first 113,000 of an employee's annual earnings for social security taxes and 1.45% of all annual earnings for medicare taxes.
Randy bumgarner earns a monthly gross salary of 3,600.00. To date, he has earned a total of 14,00.00. what is this month's Social Security tax withholding?________ What is this months Medicare tax with holding?____________

Answer 1

So there is a deduction of 6.2% of the first $113,000.00 and 1.45% of all annual earnings for medicare taxes.

Randy earns a monthly gross salary of $3,600.00. So Randy makes:

$3600 \times 12=43,200$ dollars annually.

Now,

Randy's this month's Social Security tax withholding will be given by 6.2% of his gross monthly salary that is $3,200.00.

$\frac{6.2}{100} \times 3600=223.20$

So, month's Social Security tax withholding is $223.20.

Now this month's Medicare tax withholding is given by 1.45% of his monthly gross salary.

That is:

$\frac{1.45}{100} \times 3600=52.20$

So, month's Medicare tax withholding is $52.20.