Question

Note: All calculation are done taking into account tax year as 2017.

Social Security tax (SST) rate is 12.4% of wages (Excluding medicare of 2.90%). However, if the wages exceeds $ 127,200 ($128,700 for Tax Year 2018), excess shall be ignored for Social Security Tax.

For each of the following employees, calculate the Medicare tax for the weekly pay period described: NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1: Mark Dailey's filing status is Married Filing Jointly, and he has earned gross pay of $3,450. Each period he makes a 403(b) contribution of 9% of gross pay. His current year taxable earnings for Medicare tax, to date, are $312,500.

Total Medicare Tax = $

2: Kurt Blain's filing status is single, and he has earned gross pay of $1,950. Each period he makes a 401(k) contribution of 9% of gross pay and contributes 4% of gross pay to a dependent care flexible spending plan. His current year taxable earnings for Medicare tax, to date, are $199,225.

Total Medicare Tax = $

3: Adam Webster's filing status is head of household, and he has earned gross pay of $850. Each period he contributes $35 to a flexible spending plan. His current year taxable earnings for Medicare tax, to date, are $86,400.

Total Medicare Tax = $

4: Keith Davidson's filing status is married filing separately, and he has earned gross pay of $2,200. Each period he makes a 403(b) contribution of 12% of gross pay and contributes $125 to a cafeteria plan. His current year taxable earnings for Medicare tax, to date, are $198,800.

Total Medicare Tax = $

Answer 1