McBean Farms has the following information on their Form 941: What amount should be entered in Column 2, Lines 5a and 5c? (Assume no Section 125 health insurance and that none of the employees had exceeded the Social Security wage base.)

Question

McBean Farms has the following information on their Form 941:  What amount should be entered in Column 2, Lines 5a and 5c? (Assume no Section 125 health insurance and that none of the employees had exceeded the Social Security wage base.)

Quizplus · Accepted Answer

Column 2, Line 5a: The amount for Social Security wages is calculated by taking the total taxable wages for the quarter ($75,200) and multiplying by the Social Security tax rate (6.2%). $75,200 x 6.2% = $4,662.40. Therefore, the amount for Line 5a is $4,662.40.

Column 2, Line 5c: The amount for Medicare wages is calculated by taking the total taxable wages for the quarter ($75,200) and multiplying by the Medicare tax rate (1.45%). $75,200 x 1.45% = $1,090.40. Therefore, the amount for Line 5c is $1,090.40.

Therefore, the correct answer is A, with Line 5a being $4,662.40 and Line 5c being $1,090.40.

McBean Farms Has the Following Information on Their Form 941