Question
The required deduction for Social Security is 6.2% OASDI (Old Age Survivors and Disability Insurance) of wages earned, to a maximum of $97,500 and 1.45%
The required deduction for Social Security is 6.2% OASDI (Old Age Survivors and Disability Insurance) of wages earned, to a maximum of $97,500 and 1.45% HI (Hospital Insurance, commonly known as "Medicare") for all earnings.
Refer to the Social Security and Medicare information. The employer must match the employee's deduction and send the total to the IRS. An employer has 15 employees, each earning $27,000 per year; 5 employees, each earning $32,000 a year; and 2 employees, each earning $45,000 a year. Compute the amount the employer pays in matching Social Security and Medicare funds during the year.
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