Question

The chief executive officer earns $20,000 per month. as of may 31, her gross pay was $100,000. the tax rate for social security is 6.2% of the first $118,500 earned each calendar year and the fica tax rate for medicare is 1.45% of all earnings. the current futa tax rate is 0.6%, and the suta tax rate is 5.4%. both unemployment taxes are applied to the first $7,000 of an employee's pay. what is the amount of fica-social security withheld from this employee for the month of june?

Answer 1

The total is $1,437.

Before June she had already paid social security on $100,000 in earnings. So, in June she only needs to pay social security on $18,500.

$18,500 x .062 = $1,147

She pays Medicare on all of June’s earnings = $20,000 x .0145 = $290

The total amount of FICA -social security withheld from this employee in June is $290 + $1,147 = $1,437

Answer 2

total amount of social security that witheld is = $ 1147

Step-by-step explanation:

Given data:

income of chief officer is $20,000

gross pay of officer is $100,000

tax rate of 6.2% on first $118,500

FICA tax rate of 1.45% on all earning

current futa tax rate 0.6%

suta tax rate 5.4%

total amount of social security that witheld is calculated as below

`= (118,500 - 100,000) * (6.2)/(100)`

total amount of social security that witheld is = $ 1147