calculate the social security and medicare tax that would be applied to an annual salary of $235,430. use…

calculate the social security and medicare tax that would be applied to an annual salary of $235,430. use $106,800 for maximum taxable earnings.\na. social security tax: $1,459.67, medicare tax: $341.37\nb. social security tax: $14,596.66, medicare tax: $3,413.70\nc. social security tax: $662.16, medicare tax: $341.37\nd. social security tax: $6,621.60, medicare tax: $3,413.70\nplease select the best answer from the choices provided

calculate the social security and medicare tax that would be applied to an annual salary of $235,430. use $106,800 for maximum taxable earnings.\na. social security tax: $1,459.67, medicare tax: $341.37\nb. social security tax: $14,596.66, medicare tax: $3,413.70\nc. social security tax: $662.16, medicare tax: $341.37\nd. social security tax: $6,621.60, medicare tax: $3,413.70\nplease select the best answer from the choices provided

Answer

Explanation:

Step1: Calculate Social - Security tax

The Social - Security tax rate is 6.2% on earnings up to the maximum taxable earnings of $106,800. $106800\times0.062 = 6621.6$

Step2: Calculate Medicare tax

The Medicare tax rate is 1.45% on all earnings. $235430\times0.0145=3413.735\approx3413.70$

Answer:

D. Social Security tax: $6,621.60, Medicare tax: $3,413.70