Chapter 9.II, Problem 1RE

Solve the following problems using 6.2%, up to $117,000, for social security tax and 1.45%, no wage limit, for Medicare tax.

What are the withholdings for social security and Medicare for an employee with gross earnings of $825 per week?

$\begin{array}{l}825\times .062=\underset{\_}{\underset{\_}{\$51.15}}\text{Social}\text{security}\\ \text{825}\times \text{.0145=}\underset{\_}{\underset{\_}{\$11.96}}\text{Medicare}\end{array}$