EXERCISE 8-5A: CALCULATING SOCIAL SECURITY AND MEDICARE TAXES . Assume a Social Security tax rate of 6.2% is applied to the maximum earnings of $110,100 and a Medicare tax rate of 1.45% is applied to all earnings. Calculate the Social Security and Medicare taxes for the fallowing situations: Cumul. Pay Amount of Amount of Before Current Current Amount of Amount of Current Current Year-to- Gross Pay Gross Pay Soc. Sec. Medicare Weekly Gross Date Soc. Sec. Over Max. Subject to Tax Tax Payroll Pay Earnings Maximum Soc. Sec. Soc. Sec. Withheld Withheld m \"A m 54,000 4.200 110,100 107,500 3.925 110,100