F.I.C.A, the Federal Insurance Contributions Act states that all employers must deduct 6.2 percent of the first $113,700 of an employee's annual earnings for Social Security taxes and 1.45 percent of all annual earnings for Medicare taxes. In addition, the employer matches the employee's contribution for a total of 15.3 percent. Formula for Calculating Social Security and Medicare Taxes Gross Pay x Tax Rate = Tax Withheld Directions: Read each question carefully and write your answer on the line provided. 1. Randy Bumgarner earns a gross monthly salary of $3,600.00. To date, he has earned a total of $14,400.00. What is this month's Social Security tax withholding? What is this month's Medicare tax withholding? 2. Bill Mitchum is paid a monthly salary of $7,200.00. What is his Social Security tax withholding for January? What is his Medicare tax withholding for January? What is his Social Security tax withholding for June? What is his Medicare tax withholding for June? What is his Social Security tax withholding for December? What is his Medicare tax withholding for December? 3. Carl Pearlman is paid a monthly salary of $9,600.00. What is his Social Security tax withholding for January? What is his Medicare tax withholding for January? What is his Social Security tax withholding for April? What is his Medicare tax withholding for April? What is his Social Security tax withholding for December? What is his Medicare tax withholding for December? 4. Louise Gaines is paid a monthly salary of $12,000.00. What is her Social Security tax withholding for January? What is her Medicare tax withholding for January? What is her Social Security tax withholding for September? What is her Medicare tax withholding for September? What is her Social Security tax withholding for December? What is her Medicare tax withholding for December? 5. Pete Jolly earns a gross monthly salary of $4,100.00. To date, he has earned a total of $45,100.00. What is this month's Social Security tax withholding? What is this month's Medicare tax withholding?
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Randy Bumgarner's Social Security tax withholding for this month is $3,600.00 * 0.062 = $223.20. His Medicare tax withholding for this month is $3,600.00 * 0.0145 = $52.20. Show more…
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During the first week of January, an employee works 45 hours. For this company, workers earn 150% of their regular rate for hours in excess of 40 per week. Her pay rate is $36 per hour, and her wages are subject to no deductions other than FICA Social Security, FICA Medicare, and federal income taxes. The tax rate for Social Security is 6.2% of the first $128,400 earned each calendar year, and the FICA tax rate for Medicare is 1.45% of all earnings. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 5.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $100 in federal income taxes withheld. What is the amount of this employee's net pay for the first week of January? (Round your intermediate calculations to two decimal places.)
Brooke B.
Wage and Tax Statement Data on Employer FICA Tax Ehrlich Co. began business on January 2. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of the month receives half the monthly salary for that month. All required payroll tax reports were filed, and the correct amount of payroll taxes was remitted by the company for the calendar year. Early the following year, before the Wage and Tax Statements (Form W-2) could be prepared for distribution to employees and for filing with the Social Security Administration, the employees' earnings records were inadvertently destroyed. None of the employees resigned or were discharged during the year, and there were no changes in salary rates. The social security tax was withheld at the rate of 6.0% and Medicare tax at the rate of 1.5% on salary. Data on dates of employment, salary rates, and employees' income taxes withheld, which are summarized as follows, were obtained from personnel records and payroll records: Employee Date First Employed Monthly Salary Monthly Income Tax Withheld Arnett Nov. 16 $3,600 $533 Cruz Jan. 2 5,600 1,053 Edwards Oct. 1 2,600 322 Harvin Dec. 1 2,500 310 Nicks Feb. 1 9,700 2,183 Shiancoe Mar. 1 3,500 536 Ward Nov. 16 8,500 1,836 Required: 1. Calculate the amounts to be reported on each employee's Wage and Tax Statement (Form W-2). Enter amounts to the nearest cent if required. Enter all amounts as positive numbers. Employee Gross Earnings Federal Income Tax Withheld Social Security Tax Withheld Medicare Tax Withheld Arnett Cruz Edwards Harvin Nicks Shiancoe Ward 2. Calculate the following employer payroll taxes for the year: (a) social security; (b) Medicare; (c) state unemployment compensation at 5.4% on the first $10,000 of each employee's earnings; (d) federal unemployment compensation at 0.8% on the first $10,000 of each employee's earnings; (e) total. Round your answers to two decimal places.
Sri K.
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