Mike Smith is a college football coach making a base salary of $720,000 a year ($60,000 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. Unemployment taxes are 6.2% of the first $9,000 earned per employee. 1. Assuming the Social Security base amount is $118,500, compute how much will be withheld during the year for Coach Smith's Social Security and Medicare. (Round your answer to the nearest dollar amount.) Total withheld for Social Security and Medicare during the year hrough what month will Social Security be withheld? multiple choice February January April March 3. What additional amount will the employer need to pay, assuming unemployment taxes of 6.2%? (Round your answer to the nearest dollar amount.) Additional contribution
Mike Smith is a college football coach making a base salary of $720,000 a year ($60,000 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. Unemployment taxes are 6.2% of the first $9,000 earned per employee. 1. Assuming the Social Security base amount is $118,500, compute how much will be withheld during the year for Coach Smith's Social Security and Medicare. (Round your answer to the nearest dollar amount.) Total withheld for Social Security and Medicare during the year hrough what month will Social Security be withheld? multiple choice February January April March 3. What additional amount will the employer need to pay, assuming unemployment taxes of 6.2%? (Round your answer to the nearest dollar amount.) Additional contribution
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mike Smith is a college football coach making a base salary of $720,000 a year ($60,000 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.
1. Assuming the Social Security base amount is $118,500, compute how much will be withheld during the year for Coach Smith's Social Security and Medicare. (Round your answer to the nearest dollar amount.)
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hrough what month will Social Security be withheld?
multiple choice
-
February
-
January
-
April
-
March
3. What additional amount will the employer need to pay, assuming unemployment taxes of 6.2%? (Round your answer to the nearest dollar amount.)
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