Westway Company pays Suzie Chan $3,000 per week. Assume Social Security is 6.2% on $118,500 and 1.45% for Medicare.

a. By the end of week 52, how much did Westway deduct for Suzie's Social Security and Medicare for the year? (Round your answers to the nearest cent.)

Deductions
Social Security $
Medicare $

b. What state and federal unemployment taxes does Westway pay on Suzie's yearly salary? The state unemployment rate is 5.1% and the federal unemployment tax is 0.6% on the first $7,000.

Payment
State unemployment taxes $
Federal unemployment taxes $

Question

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TaeKwonDoIsDead TaeKwonDoIsDead · Answer 1 · 2019-10-08T21:23:26+02:00

Answer:

a.

Social Security = $9672

Medicare = $2262

b.

State Unemployment Tax = $7956

Federal Unemployment Tax = $42

Step-by-step explanation:

a.

Suzie's gross pay (before tax) by end of week 52 is:

3000 * 52 = 156,000

Social Security = 0.062 * 156,000 = $9672

and

Medicare = 0.0145 * 156,000 = $2262

b.

State unemployment tax is 5.1% on yearly salary (52 weeks).

So

State Unemployment Tax = 0.051 * 156,000 = $7956

and

Federal Unemployment Tax = 0.006 * 7000 = $42