Question

Westway Company pays Suzie Chan $3,100 per week. Assume Social Security is 6.2% on $118,500 and 1.45% for Medicare. a. By the end of week 52, how much did Westway deduct for Suzie's Social Security and Medicare for the year? (Round your answers to the nearest cent.) b. What state and federal unemployment taxes does Westway pay on Suzie's yearly salary? The state unemployment rate is 5.1% and the federal unemployment tax is 0.6% on the first $7,000.

Answer 1

Answer: Westway deducted $9,683 for Suzie's Social Security and Medicare for the year. Westernway pays $42 as state unemployment tax and $420 as federal unemployment tax.

Explanation: Annual salary=weekly salary * 52 weeks

Annual salary=$161,200

Social security tax= 6.2% * $118.500= $7,347

medicare tax= 1.45% * $ 161,200= $2,336.40

state unemployment tax=0.6%*$7000=$42

federal unemployment tax=6%*$7000=$420