9. what is his social security, medicare taxes withholding for each of the following paychecks?\na. denny…

9. what is his social security, medicare taxes withholding for each of the following paychecks?\na. denny: gross monthly pay $8,928. earning to date: $98,208. social security tax rate is 6.2% for the first $97,500 and medicare tax rate is 1.45%.\netd = 98,208 > 97,500 → sst = 0\nmedicare = 8928×1.45% = 129.46\nb. james: gross weekly pay $600. earning to date: $15500. social security tax rate is 6.2% for the first $97,500 and medicare tax rate is 1.45%.\netd = 15,500 < 97,500\nsst = 600×6.2% = 37.20\nmedicare = 600×1.45% = 8.70\n10. calculate the social security and medicare taxes withheld for each of the following paychecks:\na. michael: gross weekly pay $1,200. earnings to date: $45,600. social security tax rate is 6.2% for the first $97,500, and medicare tax rate is 1.45%.\nb. lisa: gross monthly pay $7,500. earnings to date: $102,500. social security tax rate is 6.2% for the first $97,500, and medicare tax rate is 1.45%.
Answer
Explanation:
Step1: Determine Social - Security tax for Michael
Since Michael's earnings - to - date ($45,600) is less than $97,500, the Social Security tax rate of 6.2% applies. $Social\ Security\ tax = 1200\times6.2%=1200\times0.062 = 74.4$
Step2: Determine Medicare tax for Michael
The Medicare tax rate of 1.45% applies regardless of earnings - to - date. $Medicare\ tax = 1200\times1.45%=1200\times0.0145 = 17.4$
Step3: Determine Social - Security tax for Lisa
Since Lisa's earnings - to - date ($102,500) is greater than $97,500, no Social Security tax is withheld on this paycheck. $Social\ Security\ tax = 0$
Step4: Determine Medicare tax for Lisa
The Medicare tax rate of 1.45% applies regardless of earnings - to - date. $Medicare\ tax = 7500\times1.45%=7500\times0.0145 = 108.75$
Answer:
a. Michael: Social Security tax = $74.4$, Medicare tax = $17.4$ b. Lisa: Social Security tax = $0$, Medicare tax = $108.75$