Mike Samson is a college football coach making a base salary of $649,200 a year
ID: 2512154 • Letter: M
Question
Mike Samson is a college football coach making a base salary of $649,200 a year ($54,100 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 $118,500. 1. Compute how much will be withheld during the year for Coach Samson's Social Security and Medicare. (Round your final answers to 2 decimal places.) Social security Medicare 2. What additional amount will the employer need to contribute towards FICA taxes? Round your final answer to 2 decimal places.)Explanation / Answer
1. Total withheld for:
Social security
$118500 x 0.062
= $7347
Medicare
$649200 x 0.0145
= $9413
Total
$16760
2. The employer will contribute an additional (matching) $16760.
Record the sale:
Transaction
General journal
Debit
Credit
1
Accounts receivable
1736
Sales
1600
Sales tax payable(0.085 x 1600)
136
Social security
$118500 x 0.062
= $7347
Medicare
$649200 x 0.0145
= $9413
Total
$16760