Question

For each employee, you are required to pay 1.45% federal Medicare tax and 6.2% federal Social Security tax. If an

employee makes $25,000 per year, how much must you pay in these two taxes?

Answer 1

A) $1,912.50

Step-by-step explanation:

Both the federal Medicare tax and federal social security taxes are calculated based gross pay.

The medicare tax will be

=1.45% of $25,000

= 1.45/100 x $25,000

=0.0145 x $25,000

=$362.5

Social security tax will be

=6.2/100 x $25,000

=0.062 x $25,000

=$1,550.00

Total taxes = $1550.00 + $362.50

=$1,912.50