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Davis Reyes is the accounting for Heads Up Hat Corporation. As he prepares the payroll for the semimonthly pay period ending December 15, he
Davis Reyes is the accounting for Heads Up Hat Corporation. As he prepares the payroll for the semimonthly pay period ending December 15, he notices that some of the year-to-date executives' salaries have exceeded $200,000. What payroll tax responsibilities does Heads Up Hat Corporation have, especially regarding FICA taxes? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Social Security tax must be deducted from the executives' pay for those under the cap and matched by the corporation. An additional 0.9 percent Medicare tax must be deducted from the executives' pay for those over the base, but no corporate match is required. ? An additional 0.9 percent Medicare tax must be deducted from the employees' pay for those over the base and matched by the corporation. Medicare taxes should be deducted from all employees' pay and matched by the corporation.
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