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An employee earns $9,450 for the current period. The cumulative earnings of previous pay periods is...

An employee earns $9,450 for the current period. The cumulative earnings of previous pay periods is $110,000. Social security tax applies to the first $117,000 of employee earnings. Calculate the total and individual amounts to be withheld for social security (6.2%), Medicare (1.45%) and federal income tax (15%).

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Answer #1

Answer:

Given data:

  • employee earns = $9,450
  • social security = 6.2%
  • Medicare = 1.45%
  • federal income tax =  15%

Calculation of total amount to be held:

Particulars Amount Amount
Social security tax

= $ 9,450*$6.2/100

=$ 9,450*0.062

=$ 585.90

 $ 585.90
Medicare Tax

= $ 9,450*1.45/100

= $ 9,450*0.0145

= $ 137.025

 $ 137.025
Federal income tax

= ($ 10,000+$ 9,450)*15%

= $ 19,450*15/100

= $ 19,450*0.15

= $ 2917.50

 $ 2917.50
Total amount to be held

= $ 585.90+$ 137.025+$ 2917.50

=$ 3,640.425

 $ 3,640.425
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