Greger Peterson is a senior manager at a public accounting firm making a base salary of $180,000 a year ($15,000 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 Social Security maximum base amount is $118,500,how much will be withheld during the year for Greger's Social Security and Medicare.
A)$2,610.
B)$9,957.
C)$13,770.

Question

Quizplus · Accepted Answer

Social Security: $118,500 x 6.2% = $7,347
Medicare: $180,000 x 1.45% = $2,610
Total: $7,347 + $2,610 = $9,957

Greger Peterson Is a Senior Manager at a Public Accounting