chp9 9-8 Pat Maninen earns a gross salary of $2,400 each week. Assume a rate of
ID: 1174808 • Letter: C
Question
chp9
9-8
Pat Maninen earns a gross salary of $2,400 each week. Assume a rate of 6.2% on $118,500 for Social Security and 1.45% for Medicare.
a. What are Pat’s first week’s deductions for Social Security and Medicare? (Round your answers to the nearest cent.)
b. Will any of Pat’s wages be exempt from Social Security and Medicare for the calendar year? (Leave no cells blank - be certain to enter "0" wherever required.)
9-9
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.
Deductions Social Security $ Medicare $Explanation / Answer
Since, multiple questions have been posted, I have answered the first one.
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Part a)
The value of Pat’s first week’s deductions for Social Security and Medicare are calculated as below:
Social Security = Weekly Salary*6.2% = 2,400*6.2% = $148.80
Medicare = Weekly Salary*1.45% = 2,400*1.45% = $34.80
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Tabular Representation:
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Part b)
The amount of Pat's wages exempt from Social Security and Medicare for the calendar year is determined as below:
Social Security = Total Wages for the Year - Maximum Amount Subject to Social Security Tax = 2,400*52 - 118,500 = $6,300 Exempt
Medicare = No Wages Exempt (there is no limit on the amount of earnings that is subject to medicare tax)
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Tabular Representation:
Deductions Social Security $148.80 Medicare $38.80Related Questions
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