The following data is for the January 19 pay date for Waryzbok Inc.: Jan 19 Wages and salaries expense 522 $ 12,987.00
Federal withholding tax payable 220 $ 2,207.79
Social Security tax payable 221 ???
Medicare tax payable 222 ???
401(k) contributions payable 223 454.55
Health Insurance payable 224 944.15
State Income tax payable 227 324.68
Wages and salaries payable 226 8,134.55
Jan 19 Wages and salaries payable 226 8,134.55
Cash 101 8,134.55
Which of the following represents the missing Social Security and Medicare taxes, assuming that the health
Insurance is qualiﬁed under Section 125?
A) Social Security tax, $204.15; Medicare tax, $792.35
B) Social Security tax, $792.35; Medicare tax, $204.15
C) Social Security tax, $746.66; Medicare tax, $174.62
D) Social Security tax, $188.31; Medicare tax, $805.19

Question

Quizplus · Accepted Answer

Social Security tax is 6.2% of wages and salaries, and Medicare tax is 1.45% of wages and salaries. The total wages and salaries for the pay period are $12,987.00, so the Social Security tax is $12,987.00 x 0.062 = $805.19, and the Medicare tax is $12,987.00 x 0.0145 = $188.31.

The Following Data Is for the January 19 Pay Date