Calculate the Social Security and Medicare tax that would be applied to an annual salary of $35,400.
a.
Social Security tax: $2,194.80, Medicare tax: $513.30
b.
Social Security tax: $21,948.00, Medicare tax: $5,133.00
c.
Social Security tax: $6,621.60, Medicare tax: $513.30
d.
Social Security tax: $66,216.00, Medicare tax: $5,133.00
To calculate the Social Security tax, you would multiply the annual salary by the Social Security tax rate. The Social Security tax rate is currently 6.2%.
Social Security tax = $35,400 * 0.062 = $2,194.80
To calculate the Medicare tax, you would multiply the annual salary by the Medicare tax rate. The Medicare tax rate is currently 1.45%.
Medicare tax = $35,400 * 0.0145 = $513.30
Therefore, the correct answer is:
a. Social Security tax: $2,194.80, Medicare tax: $513.30.
To calculate the Social Security and Medicare tax for an annual salary of $35,400, we need to first determine the tax rates for each.
The Social Security tax rate is currently 6.2% (as of 2021) on income up to a maximum limit, which is $142,800 for 2021. However, since the annual salary of $35,400 is below this limit, we will apply the tax rate of 6.2% to the entire salary.
Social Security tax = $35,400 x 6.2% = $2,194.80
The Medicare tax rate is 1.45% (as of 2021) on all earnings with no maximum limit.
Medicare tax = $35,400 x 1.45% = $513.30
Therefore, the correct answer is option a.
Social Security tax: $2,194.80, Medicare tax: $513.30