Problem 6-16 The Nanny Tax (LO 6.6)

Sally hires a maid to work in her home for $400 per month. The maid is 25 years old and not related to Sally. During 2022, the maid worked ten months for Sally.

Do not round immediate computations and round your final answers to two decimal places.

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a. What is the employers share of Social Security tax Sally must pay? $

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b. What is the employers share of Medicare tax Sally must pay?

$

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c. What is the amount of Social Security and Medicare tax which must be withheld from the maid's wages?

Sally should withhold for Social Security and Medicare tax of: $