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
The correct answer is:
a. Social Security tax: $347.26, Medicare tax: $81.22
To calculate the Social Security and Medicare tax, we need to know the current tax rates for each.
As of 2021, the Social Security tax rate is 6.2% and the Medicare tax rate is 1.45%.
To calculate the Social Security tax, multiply the annual salary of $56,010 by the Social Security tax rate of 6.2%:
Social Security tax = $56,010 * 0.062 = $3,481.26
To calculate the Medicare tax, multiply the annual salary of $56,010 by the Medicare tax rate of 1.45%:
Medicare tax = $56,010 * 0.0145 = $812.15
The correct answer is option b. Social Security tax: $3,472.62, Medicare tax: $812.15.