During 2017,Scott Howell received a salary of $135,000.The social security base amount for 2017 was $127,200.How much payroll tax should have been withheld from Scott's salary for 2017?

Question

Quizplus · Accepted Answer

The amount of payroll tax that should have been withheld from Scott's salary for 2017 is equal to the Social Security tax (6.2%) on the first $127,200 of his salary plus the Medicare tax (1.45%) on his entire salary. 
Social Security tax = $127,200 x 6.2% = $7,886.40
Medicare tax = $135,000 x 1.45% = $1,957.50
Total payroll tax = $7,886.40 + $1,957.50 = $9,843.90, which rounds to $9,844. Therefore, the correct answer is D.

During 2017,Scott Howell Received a Salary of $135,000