Mr. Juan Prez works as an employee of a pharmaceutical company and during 2007 he received an annual salary of $24,000 and, in addition, $16,000

Mr. Juan Pérez works as an employee of a pharmaceutical company and during 2007 he received an annual salary of $24,000 and, in addition, $16,000 for commissions and $12,000 for per diem and mileage. In addition, the employer makes an annual contribution of $2,160.00 to Mr. Pérez's medical plan.

 

1. Which of the aforementioned items are taxable for Social Security purposes?

 


2. What amount will have to pay for Social Security contributions, both the employer and the employee?