Question

chp9

9-8

Pat Maninen earns a gross salary of $2,400 each week. Assume a rate of 6.2% on $118,500 for Social Security and 1.45% for Medicare.

a. What are Pat’s first week’s deductions for Social Security and Medicare? (Round your answers to the nearest cent.)

	Deductions
Social Security	$
Medicare	$

b. Will any of Pat’s wages be exempt from Social Security and Medicare for the calendar year? (Leave no cells blank - be certain to enter "0" wherever required.)

Social Security

(Click to select)No wages exemptExempt

$

Medicare

(Click to select)No wages exemptExempt

$

9-9
Westway Company pays Suzie Chan $3,100 per week. Assume Social Security is 6.2% on $118,500 and 1.45% for Medicare.

a. By the end of week 52, how much did Westway deduct for Suzie's Social Security and Medicare for the year? (Round your answers to the nearest cent.)

	Deductions
Social Security	$
Medicare	$

b. What state and federal unemployment taxes does Westway pay on Suzie's yearly salary? The state unemployment rate is 5.1% and the federal unemployment tax is 0.6% on the first $7,000.

	Payment
State unemployment taxes	$
Federal unemployment taxes	$

Answer 1

Since, multiple questions have been posted, I have answered the first one.

______

Part a)

The value of Pat’s first week’s deductions for Social Security and Medicare are calculated as below:

Social Security = Weekly Salary*6.2% = 2,400*6.2% = $148.80

Medicare = Weekly Salary*1.45% = 2,400*1.45% = $34.80

_____

Tabular Representation:

	Deductions
Social Security	$148.80
Medicare	$38.80

_____

Part b)

The amount of Pat's wages exempt from Social Security and Medicare for the calendar year is determined as below:

Social Security = Total Wages for the Year - Maximum Amount Subject to Social Security Tax = 2,400*52 - 118,500 = $6,300 Exempt

Medicare = No Wages Exempt (there is no limit on the amount of earnings that is subject to medicare tax)

_____

Tabular Representation:

Social Security	Exempt	$6,300
Medicare	No Wages Exempt	$0