Exercise 4.The monthly wages for December, 2016 and the year-to-date earnings as of November 30 for the three employees of the Raton Inc. are listed in the table below.

Requirements:1. Calculate the amount of FICA: Social security tax and Medicare tax to be

withheld from each of the employee's gross (December only). Apply a 6.2 percent as a social security tax rate using

a 1.45 percent as a Medicare tax rate.

the annual limit of the

contribution and benefit base. For earnings in 2016, this base is

$118,500. Also, apply

Employee	December Salary	The year-to- date earnings up to November	Social Security Tax (December, 2016)	Medicare Tax (December, 2016)
Kristen Wedge	$2,400	$26,400	$148.8	$34.8
Manuel Ergo	11,800	129, 800	0	171.1
Ewe Raiden	9,500	114,000	279	137.75

Explanation:1. Kristen Wedge Social Sec. Tax: $2,400 * 6.2% = $148.8

Medicare Tax : $2,400 * 1.45%= $34.82. Manuel Ergo: Social Sec. Tax: $0= $0 (he reached the maximum>

$118,500)Medicare Tax : $11,800 * 1.45%= $171.1

3. Ewe Raiden: Social Sec. Tax: ($118,500 - $114,000) * 6.2% = $279 Medicare Tax : $9,500 * 1.45%= $137.75