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Lets calculate the payroll for Jordon Barrett: Gross Pay: Jordon earns a monthly salary of $12,000. Social Security Tax: Since Jordons cumulative earnings were $142,800,
Lets calculate the payroll for Jordon Barrett: Gross Pay: Jordon earns a monthly salary of $12,000. Social Security Tax: Since Jordons cumulative earnings were $142,800, which is the maximum income limit for Social Security tax, he will not owe any more Social Security tax for the rest of the year. So, his Social Security tax for this payroll is $0. Medicare Tax: This is calculated as 1.45% of the gross pay. So, 1.45% of $12,000 is $174. Federal Income Tax (FIT): The FIT is calculated using the percentage method. However, without knowing the exact tax rate or having access to Table 9.1 and Table 9.2, I cant calculate the exact FIT. You would need to refer
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