CALCULATING SOCIAL SECURITY AND MEDICARE TAXES Assume a Social Security tax rate of 6.2% is applied to maximum earnings of $128,400 and a Medicare tax rate of 1.45% is applied to all earnings. Calculate the Social Security and Medicare taxes for the following situations: Amount Over Max. Soc. Sec. Amount Subject to Soc. Sec. Soc. Sec. Tax Withheld Medicare Tax Withheld Cumul. Pay Before Current Current Weekly Payroll Gross Pay $ 31,000 $1,500 53,000 2,860 125,500 3,140 127,600 2,920 Year-to-Date Soc. Sec. Earnings Maximum $128,400 128,400 128,400 128,400