Final answer:
Suzie's annual Social Security and Medicare deductions are $7,347 and $2,262, respectively, and Westway's unemployment tax payments are $357 for state and $42 for federal on Suzie's salary.
Step-by-step explanation:
To calculate the Social Security and Medicare deductions for Suzie Chan, we need to consider her annual salary and the respective tax rates.
Suzie earns $3,000 per week, so her annual salary is:
Annual Salary = Weekly Salary × Number of Weeks in a Year = $3,000 × 52 = $156,000
The Social Security tax rate is 6.2%, but it only applies to the first $118,500 of earnings. Thus, her Social Security deduction for the year is:
Social Security Deduction = $118,500 × 6.2% = $7,347
The Medicare tax rate is 1.45%, and it applies to the entire annual salary:
Medicare Deduction = Annual Salary × 1.45% = $156,000 × 1.45% = $2,262
For the unemployment taxes, the federal unemployment tax (FUTA) is 0.6% of the first $7,000 of earnings, and the
state unemployment tax rate is 5.1% on the same amount:
State Unemployment Taxes = $7,000 × 5.1% = $357
Federal Unemployment Taxes = $7,000 × 0.6% = $42
So, the annual Social Security and Medicare deductions for Suzie Chan are as follows:
-
- Social Security: $7,347
-
- Medicare: $2,262
And Westway's unemployment tax contributions on Suzie's salary are:
-
- State unemployment taxes: $357
-
- Federal unemployment taxes: $42