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 $128,400, how much will be withheld during the year for Peterson's Social Security and Medicare taxes. (Round your answers to the nearest dollar amount.)

$10,570.80

Explanation:

The computation of the withheld during the year is shown below:

= Social security tax + medicare tax

where,

Social security tax is

= $128,400 × 6.2%

= $7,960.80

And, the medicare tax is

= $180,000 × 1.45%

= $2,610

So, the total withheld during the year is

= $7,960.80 + $2,610

= $10,570.80

We simply added the social security and medicare taxes so that the withheld could come

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