00:01
This calculates the social security and medicare deductions for the following employee.
00:04
We have a tax rate of 6 .2 % on 128 ,400 for social security, and 1 .45 % for medicare.
00:15
And there's no cap on medicare.
00:18
So up to this point, this employee has made $399 ,000.
00:23
Well, that means he has surpassed that $128 ,000 cap.
00:27
So he doesn't have to pay social security.
00:29
On this particular paycheck.
00:32
So he does have to pay medicare, however.
00:34
So let's see, his amount of pay this period is $6 ,600.
00:39
So he needs to pay 1 .45%...