Question

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $235,430. Use $106,800 for maximum taxable earnings.
a.
Social Security tax: $1,459.67, Medicare tax: $341.37
b.
Social Security tax: $14,596.66, Medicare tax: $3,413.70
c.
Social Security tax: $662.16, Medicare tax: $341.37
d.
Social Security tax: $6,621.60, Medicare tax: $3,413.70



Please select the best answer from the choices provided


A
B
C
D

Answer 1

D

Calculations:
- Social Security = $106,800 × 6.2% = $6,621.60
- Medicare = $235,430 × 1.45% = $3,413.74 (matches the $3,413.70 choice)