Question

Based on the payroll information for Romac Electric that follows:
Total gross earnings: $2,462.00
Social Security tax rate: 6.2%
Medicare tax rate 1.45%
State unemployment tax rate 5.4%
Federal unemployment tax rate 0.8%
Find the Social Security Tax Payable (employees' and employer's)

Answer 1

To find the social security tax payable for both employees and the employer, we need to calculate them separately.

For the employee:
Multiply the total gross earnings by the social security tax rate: $2,462.00 * 6.2% = $152.44

For the employer:
Multiply the total gross earnings by the social security tax rate: $2,462.00 * 6.2% = $152.44

Therefore, the social security tax payable for both the employee and employer is $152.44 each.