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. a social security tax $1,459.67, medicare tax $341.37 b social security tax $14,596.66, medicare tax $3,413.70 c social security tax $662.16, medicare tax $341.37 d social security tax $6,621.60, medicare tax $3,413.70 please 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. a social security tax $1,459.67, medicare tax $341.37 b social security tax $14,596.66, medicare tax $3,413.70 c social security tax $662.16, medicare tax $341.37 d social security tax $6,621.60, medicare tax $3,413.70 please 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 $106,800. Since $235,430 > $106,800, the taxable amount for Social - Security is $106,800. Social - Security tax = $106,800×0.062 = $6,621.60$.

Step2: Calculate Medicare tax

The Medicare tax rate is 1.45% on all earnings. Medicare tax = $235,430×0.0145=$3,413.735\approx$3,413.70$.

Answer:

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