Question 3

The Social Security or FICA tax has two components.

The first component is the Social Security Benefits tax, which in 2015 was 6.2% on the first $118,500 of earnings for the year.

The second component is the Medicare tax which was 1.45% of earnings plus 0.9% of earnings above $200,000 (for unmarried employees).

Write a program to calculate a single (non-married) employees FICA withholding tax for the current pay period.

Notes:

You are to use constants for the Social Security tax rate, the Medicare tax rate, and the Base earnings rate ($118,500).

You are to use the ElseIf structure in your code

Your program must be appropriately documented.

You must follow naming and programming conventions.

You should check your program with the data in the form below.

The following shows the form you must create for your Application:

Here is an example:

Suppose a person has total earnings for the year (but before the current pay period) of 118,000. Their earnings for the period are 1,200.00.

They would pay the Social Security Benefits tax on $500 (anything over 118,500 is not taxed for this), and at a rate of 6.2% that would be $31.00 in tax.

They would also pay the Medicare tax on the entire 1,200 as they would still be below the cutoff of 200,000. At a rate of 1.45% this would be $17.40 in tax.

They would not pay the surtax of 0.9% as that only applies to amounts over 200,000.

You have to calculate how much of their earnings for the period is subject to each of the three taxes.

Here are a few more examples:

	Case 1	Case 2	Case 3
Earning before period	$118,000.00	$199,800.00	$50,000.00
Earnings for period	$1,200.00	$1,200.00	$755.00
Total earnings to date	$119,200.00	$201,000.00	$50,755.00
Amount taxable for Social Security	$500.00	$0.00	$755.00
Amount NOT taxable for Social Security	$700.00	$1,200.00	$0.00
Social Security tax rate	6.20%	6.20%	6.20%
Social security tax due	$31.00	$0.00	$46.81
Amount taxable for Medicare	$1,200.00	$200.00	$755.00
Amount NOT taxable for Medicare	$0.00	$1,000.00	$0.00
Medicare tax rate	1.45%	1.45%	1.45%
Medicare tax due	$17.40	$2.90	$10.95
Amount taxable for medicare surtax	$0.00	$1,000.00	$0.00
Amount NOT taxable for medicare surtax	$1,200.00	$200.00	$1,200.00
Medicare surtax rate	0.90%	0.90%	0.90%
Medicare surtax due	$0.00	$9.00	$0.00
Total tax due	$48.40	$11.90	$57.76

FICA Tax Total earnings for this year prior to the 12345.67 current pay period: txtYTDEarnings Earnings for the current pay period: 543.21 txtPeriodEarnings btnCalculate Calculate FICA Tax FICA tax for the current pay period: 1.56 IbOutput FICA Tax Total earnings for this year prior to the 12345.67 current pay period: txtYTDEarnings Earnings for the current pay period: 543.21 txtPeriodEarnings btnCalculate Calculate FICA Tax FICA tax for the current pay period: 1.56 IbOutput