Question

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $56,010.
a.
Social Security tax: $347.26, Medicare tax: $81.22
b.
Social Security tax: $3,472.62, Medicare tax: $812.15
c.
Social Security tax: $662.16, Medicare tax: $81.22
d.
Social Security tax: $6,621.60, Medicare tax: $812.15

Answer 1

Use the employee rates: Social Security = 6.2%, Medicare = 1.45%.

Social Security: 0.062 × $56,010 = $3,472.62
Medicare: 0.0145 × $56,010 = $812.15

Answer: b.