3Lesson 2.4NameSocial Security & MedicareThe Federal Insurance Contributions Act (FICA) requiresemployers to deduct 6.2% for Social Security and 1.45% of allannual income for Medicare taxes.1. Larenzo Lopez, a store manager, has a gross weekly income for$721.15. His earnings to date for this year total $25,240.25. Howmuch is deducted from his paycheck this week for Social Security?How much for Medicare?SSMedicare2. Maria Metcalf, a heating technician, has a gross weekly income The Federal Insurance Contributions Act (FICA) requires employers to deduct apercent of your income as taxes for Social Security to pay pays for retirement anddisability benefits.On a payroll statement Social Security and Medicare are under one umbrella:FICAGross Pay * 6.2%= Social Security tax Withheld(6.2% = .062)ntsGross Pay * 1.45% = Medicare tax Withheld (1.45% = .0145)FICA = Social Security Tax + Medicare Tax

given, gross pay =$721.15 annual income = $25240.25 social security tax = 6.2% × gross pay medicare…

The Federal Insurance Contributions Act (FICA) requires employers to deduct 6.2% for Social Security and 1.45% of all annual income for Medicare taxes. 1. Larenzo Lopez, a store manager, has a gross weekly income for $721.15. His earnings to date for this year total $25,240.25. How much is deducted from his paycheck this week for Social Security? How much for Medicare? SS Medicare

The Federal Insurance Contributions Act (FICA) requires employers to deduct 6.2% for Social Security and 1.45% of all annual income for Medicare taxes. 1. Larenzo Lopez, a store manager, has a gross weekly income for $721.15. His earnings to date for this year total $25,240.25. How much is deducted from his paycheck this week for Social Security? How much for Medicare? SS Medicare

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter9: Payroll Accounting: Employer Taxes And Reports

Section: Chapter Questions

Problem 3MC

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