The monthly wages for December, 2020 and the year-to-date

earnings as of November 30 for the three employees of the Elegant Inc.

are listed in the table below.

Requirements:

Calculate the amount of FICA: Social Security Tax and Medicare Tax to

be

withheld from each of the employee's gross (December only). Apply a 6.2

percent as a social security tax rate using the annual limit of the contribution and

benefit base. For earnings in 2020, this base

is $137,700. Also, apply a 1.45

percent as a Medicare tax rate.

Employers are responsible for withholding the

0.9% Additional Medicare Tax on an individual's wages paid in excess of

$200,000 in a calendar year, without regard to filing status

Employee December Salary The year-to- Social Security Tax Medicare tax

date earnings (December 2020) (December 2020)

up to November

Rod Cast $5000

Veronica Ergo $16800

Ann Lola $15000