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Calculating Social Security and Medicare Taxes Issume a Social Security tax rate of 6.2% is applied to maximum earnings of $128,400 and a Medicare tax

image text in transcribed Calculating Social Security and Medicare Taxes Issume 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 Soci Security and Medicare taxes for the following situations: f required, round your answers to the nearest cent. Feedback Check My Work - If the year-to-date earnings $128,400 then none of the current earnings are subject to Social Security Tax. - If Year-to-Date Earnings partially extend beyond the OASDI cap ($128,400), then a portion of the Current Gross Pay is subject to Social Security Tax. For example, assume that Cumulative Pay Before Current Weekly Payroll is $126,125 and that current gross pay is $6,000. Year-to-date earnings would be $132,125($126,125+$6,000). The amount over the social security maximum would be $3,725 ( $132,125$128,400). The amount amount subject to Social Security tax is difference between the OASDI cap ($128,400) and Cumulative Pay Before Current Weekly Payroll of $126,125, or $2,275a. Thus the amount Subject to Soc. Sec. is $2,275, taxed at the OASDI rate of 6.2% which equals $141.05 a Note: Your check figure is $3,725+$2,275=$6,000

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