Question

Mike Gundy is a college football coach making a base salary of $2,400,000 a year ($200,000 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 $118,500, through what month will Social Security be withheld?

Answer 1

The amount whithelddd is $34.800

Step-by-step explanation:

All we have to do is multiply the data provided in the exercise as follows:

=Security maximum base*Social security tax up + Base salary*Medicare tax

=118,500*0.062 +2400000*0.0145

= 34800