Mike Samson is a college football coach making a base salary of $652,800 a year ($54,400 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the FICA base amount is $128,400, compute how much will be withheld during the year for Coach Samson’s Social Security and Medicare. What matching amount will the employer need to contribute?
Mike Samson is a college football coach making a base salary of $652,800 a year ($54,400 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the FICA base amount is $128,400, compute how much will be withheld during the year for Coach Samson’s Social Security and Medicare. What matching amount will the employer need to contribute?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mike Samson is a college football coach making a base salary of $652,800 a year ($54,400 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the FICA base amount is $128,400, compute how much will be withheld during the year for Coach Samson’s Social Security and Medicare. What matching amount will the employer need to contribute?
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