Mike Gundy is a college football coach making a salary of $2,400,000 a year ($200,000 per month).Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum.Assuming the FICA maximum base amount is $106,800,through what month will Social Security be withheld?

Question

Quizplus · Accepted Answer

Mike Gundy's monthly salary is $200,000. The Social Security tax is withheld up to a maximum base of $106,800. Since his monthly salary exceeds this base, the entire base amount will be reached in January, so Social Security will only be withheld in January.

Mike Gundy Is a College Football Coach Making a Salary