Calculating Social Security and Medicare TaxesAssume a Social Security tax rate of 6.2% is applied to maximum earnings of $128,400 and a Medicare tax rate of 1.45% is applied to all earnings. Calculate the Social Security and Medicare taxes for the following situations:If required, round your answers to the nearest cent.Cumul. PayBefore CurrentWeekly PayrollCurrentGross PayYear-to-DateEarningsSoc. Sec.MaximumAmountOver Max.Soc. Sec.AmountSubject toSoc. Sec.Soc. Sec. TaxWithheldMedicareTaxWithheld$ 30,200$1,460$fill in the blank 1$128,400$fill in the blank 2$fill in the blank 3$fill in the blank 4$fill in the blank 5 54,000 2,960 fill in the blank 6 128,400 fill in the blank 7 fill in the blank 8 fill in the blank 9 fill in the blank 10 125,700 3,340 fill in the blank 11 128,400 fill in the blank 12 fill in the blank 13 fill in the blank 14 fill in the blank 15 127,100 2,940 fill in the blank 16 128,400 fill in the blank 17 fill in the blank 18 fill in the blank 19 fill in the blank 20

Taxation is defined as the act which levies the tax upon the income earned by the taxpayer either individual or the group of people entitled under company. There are various types of taxes which vary according to their base of income, such as income tax, medical tax, social security tax, and many more.Cumul. PayBefore CurrentWeekly Payroll CurrentGross Pay Year-to-DateEarnings Soc. Sec.Maximum AmountOver Max.Soc. Sec. AmountSubject toSoc. Sec. Soc. Sec. TaxWithheld MedicareTaxWithheld $ 30,200 $1,460 =$30,200-$1,460=$28,740 $128,400 =$128,400×6.2%=$7,960.8 =$28,740×6.2%=$1,781.88 $1,781.88 =$28,740×1.45%=$416.73 54,000 2,960 =$54,000-$2,960=$51,040 128,400 =$128,400×6.2%=$7,960.8 =$51,040×6.2%=$3,164.48 $3,164.48 =$51,040×1.45%=$740.08 125,700 3,340 =$125,700-$3,340=$122,360 128,400 =$128,400×6.2%=$7,960.8 =$122,360×6.2%=$7,586.32 $7,586.32 =$122.360×1.45%=$1,774.22 127,100 2,940 =$127,100-$2,940=$124,160 128,400 =$128,400×6.2%=$7,960.8 =$124,160×6.2%=$7,697.92 $7,697.92 =$124,160×1.45%=$1,800.32

Answered: Calculate the Social Security and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Calculating Social Security and Medicare Taxes

Assume a Social Security tax rate of 6.2% is applied to maximum earnings of $128,400 and a Medicare tax rate of 1.45% is applied to all earnings. Calculate the Social Security and Medicare taxes for the following situations:

If required, round your answers to the nearest cent.

Cumul. Pay Before Current Weekly Payroll	Current Gross Pay	Year-to-Date Earnings	Soc. Sec. Maximum	Amount Over Max. Soc. Sec.	Amount Subject to Soc. Sec.	Soc. Sec. Tax Withheld	Medicare Tax Withheld
$ 30,200	$1,460	$fill in the blank 1	$128,400	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4	$fill in the blank 5
54,000	2,960	fill in the blank 6	128,400	fill in the blank 7	fill in the blank 8	fill in the blank 9	fill in the blank 10
125,700	3,340	fill in the blank 11	128,400	fill in the blank 12	fill in the blank 13	fill in the blank 14	fill in the blank 15
127,100	2,940	fill in the blank 16	128,400	fill in the blank 17	fill in the blank 18	fill in the blank 19	fill in the blank 20

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