Family Flowers employs 17 people, of whom 14 earn gross pay of $640.00 each and 3 earn gross pay of $720.00 each on a weekly basis. What is the employer's share of total social security and Medicare taxes for the first quarter of the year? (Social security tax is 6.2% of wages up to $128,400. Medicare tax is 1.45% of all wages.)

Question

Quizplus · Accepted Answer

The employer's share of social security tax is 6.2% of $128,400, or $7,984.80. The employer's share of Medicare tax is 1.45% of all wages, or $3,074.04. The total employer's share of social security and Medicare taxes for the first quarter of the year is $7,984.80 + $3,074.04 = $11,058.84.

Family Flowers Employs 17 People, of Whom 14 Earn Gross