On November 30, the payroll register of Webster & Smith indicated the following information:
Determine the amount of Social Security and Medicare taxes to be withheld. Round your answers to one decimal place.
Social Security Tax=$
Medicare Tax=$136,30
I cannot figure out how to solve or the answer is for the social security tax. Can you please help?
To determine the amount of Social Security tax to be withheld, we need to know the wage base limit for Social Security taxes. This limit is the maximum amount of earnings on which Social Security taxes are calculated.
For the year 2021, the wage base limit for Social Security taxes is $142,800. Any earnings above this amount are not subject to Social Security taxes.
To calculate the Social Security tax, you need to find the employee's taxable wages, which is the amount of earnings that fall under the Social Security tax bracket. Typically, the Social Security tax rate is 6.2% of the employee's taxable wages.
In this case, the question does not provide the employee's taxable wages, so we cannot determine the exact Social Security tax amount. However, I can provide you with the formula to calculate it once you have the necessary information.
The formula to calculate the Social Security tax is:
Social Security tax = (Taxable wages) * (Social Security tax rate)
You can find the employee's taxable wages by subtracting any applicable pre-tax deductions (such as retirement contributions or health insurance premiums) from their gross wages.
Once you have the taxable wages, you can use the formula above to calculate the Social Security tax.
I apologize for not being able to provide the exact answer in this case, but I hope this explanation helps you understand how to calculate the Social Security tax.