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Answered

a senior manager at a public accounting firm makes a base salary of $180,000 a year ($15,000 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 $142,800, how much will be withheld during the year for the manager's social security and medicare taxes?

Answer :

The social security tax will be withheld through September.

What is social security and Medicare taxes?

The hospital insurance tax, often known as Medicare taxes, and the old-age, survivors, and disability insurance tax are the two types of taxes covered by the Federal Insurance Contributions Act (FICA).

Social Security maximum base amount = $142800

Social security tax rate = 6.2% = 0.062

Medicare tax = 1.45% = 0.0145

Medicare Tax = no maximum

Base salary = $180,000

Social security tax amount = 0.062 × $142800 = $8,853.6

Medicare Tax = 0.0145 × $180,000 = $2,610

Social security tax to be withheld = $8,853.6

Social security maximum base amount = $142800

Monthly salary = $15,000

$142800 ÷ $15,000 = 9.52

($15,000 × 9) + ($15000×0.52) = $135,000 + $7,800

Therefore, the social security tax will be withheld through the ninth month which is between January to September

To know more about social security and Medicare taxes, visit:

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