Question

Calculate social security and medicare tax for the below-listed employees of tclh industries, a manufacturer of cleaning products. none of the employees files as married filing separately on their year-end tax return. zachary fox does not make any voluntary deductions that impact earnings subject to federal income tax withholding or fica taxes. he is married, files his tax return as married filing jointly, and his weekly gross pay was $1,162. when completing form w-4 zachary checked box 2c, entered $2,000 in step 3 of the form, and left step 4 blank. the current pay period is his first with the company.

Answer 1

To calculate the Social Security and Medicare taxes for Zachary Fox from TCLH Industries, we multiply his weekly gross pay of $1,162 by the respective tax rates. His Social Security tax is $72.04 (6.2%) and his Medicare tax is $16.85 (1.45%). These figures represent only the employee's share of the payroll taxes.

Step-by-step explanation:

Calculating Social Security and Medicare Tax

Zachary Fox is an employee at TCLH Industries with a weekly gross pay of $1,162. To calculate his Social Security and Medicare tax, we apply the applicable rates to his gross pay. The Social Security tax rate is 6.2%, and the Medicare tax rate is 1.45%.

Here's the calculation for Zachary:

• Social Security tax: $1,162 × 6.2% = $72.044
• Medicare tax: $1,162 × 1.45% = $16.849

Therefore, Zachary's total deduction for Social Security would be $72.04, and for Medicare, it would be $16.85. It's important to note these amounts represent the employee's portion of the payroll taxes, as employers pay an equal portion for these federal programs. Gig economy workers who receive a 1099 must pay both the employee and employer portions.