Mike Smith is a college football coach making a base salary of $960,000 a year ($80,000 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 base amount is $106,800, compute how much will be withheld during the year for Coach Smith's Social Security and Medicare. Through what month will Social Security be withheld? What additional amount will the employer need to contribute?

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The Answer of Mike Smith is a college football coach making a base salary of $960,000 a year ($80,000 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 base amount is $106,800, compute how much will be withheld during the year for Coach Smith's Social Security and Medicare. Through what month will Social Security be withheld? What additional amount will the employer need to contribute?

Mike Smith Is a College Football Coach Making a Base