The Federal Insurance Contributions Act (FICA) requires employers to deduct 6.2% for Social Security and 1.45% of all annual income for Medicare taxes. 1. Larenzo Lopez, a store manager, has a gross weekly income for $721.15. His earnings to date for this year total $25,240.25. How much is deducted from his paycheck this week for Social Security? How much for Medicare? SS Medicare
The Federal Insurance Contributions Act (FICA) requires employers to deduct 6.2% for Social Security and 1.45% of all annual income for Medicare taxes. 1. Larenzo Lopez, a store manager, has a gross weekly income for $721.15. His earnings to date for this year total $25,240.25. How much is deducted from his paycheck this week for Social Security? How much for Medicare? SS Medicare
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter9: Payroll Accounting: Employer Taxes And Reports
Section: Chapter Questions
Problem 3MC
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![3
Lesson 2.4
Name
Social Security & Medicare
The Federal Insurance Contributions Act (FICA) requires
employers to deduct 6.2% for Social Security and 1.45% of all
annual income for Medicare taxes.
1. Larenzo Lopez, a store manager, has a gross weekly income for
$721.15. His earnings to date for this year total $25,240.25. How
much is deducted from his paycheck this week for Social Security?
How much for Medicare?
SS
Medicare
2. Maria Metcalf, a heating technician, has a gross weekly income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F268ccc4e-ddf0-499f-b003-41a8a0b2410b%2F5c627148-0aeb-4869-bff4-c152314e62a1%2F7jyi1z8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3
Lesson 2.4
Name
Social Security & Medicare
The Federal Insurance Contributions Act (FICA) requires
employers to deduct 6.2% for Social Security and 1.45% of all
annual income for Medicare taxes.
1. Larenzo Lopez, a store manager, has a gross weekly income for
$721.15. His earnings to date for this year total $25,240.25. How
much is deducted from his paycheck this week for Social Security?
How much for Medicare?
SS
Medicare
2. Maria Metcalf, a heating technician, has a gross weekly income
![The Federal Insurance Contributions Act (FICA) requires employers to deduct a
percent of your income as taxes for Social Security to pay pays for retirement and
disability benefits.
On a payroll statement Social Security and Medicare are under one umbrella:
FICA
Gross Pay * 6.2%= Social Security tax Withheld
(6.2% = .062)
nts
Gross Pay * 1.45% = Medicare tax Withheld (1.45% = .0145)
FICA = Social Security Tax + Medicare Tax](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F268ccc4e-ddf0-499f-b003-41a8a0b2410b%2F5c627148-0aeb-4869-bff4-c152314e62a1%2Fk8t0ao_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Federal Insurance Contributions Act (FICA) requires employers to deduct a
percent of your income as taxes for Social Security to pay pays for retirement and
disability benefits.
On a payroll statement Social Security and Medicare are under one umbrella:
FICA
Gross Pay * 6.2%= Social Security tax Withheld
(6.2% = .062)
nts
Gross Pay * 1.45% = Medicare tax Withheld (1.45% = .0145)
FICA = Social Security Tax + Medicare Tax
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