Suppose a college football coach makes a base salary of $2,400,000 a year ($200,000 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. Assuming the Social Security maximum base amount is $128,400, how much will be withheld during the year for the coach's Social Security and Medicare taxes? (Round your answers to the nearest dollar amount.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Suppose a college football coach makes a base salary of $2,400,000 a year ($200,000 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. Assuming the Social Security maximum
base amount is $128,400, how much will be withheld during the year for the coach's Social
Security and Medicare taxes? (Round your answers to the nearest dollar amount.)
Transcribed Image Text:Suppose a college football coach makes a base salary of $2,400,000 a year ($200,000 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. Assuming the Social Security maximum base amount is $128,400, how much will be withheld during the year for the coach's Social Security and Medicare taxes? (Round your answers to the nearest dollar amount.)
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