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)
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.