Calculate the social security and medicare tax that would be applied to an annual salary of $235,430. use $106,800 for maximum taxable earnings

Social Security tax is a percentage that both employees and employers must contribute 6.2% of employee compensation, for a total of 12.4%. The social security that would be applied to an annual salary of $235,430 using $106,800 as the maximum taxable income is 12.4% of $106,800 = 0.124 x $106,800 = $13,243.20 The Medicare payroll tax is 2.9%. It applies only to earned income, which is wages you are paid by an employer, plus tips. You're responsible for 1.45% of the tax, and it's deducted automatically from your paycheck. Your employer pays the other 1.45% The Medicare tax that would be applied to an annual salary of $235,430 using $106,800 as the maximum taxable income is 2.9% of $106,800 = 0.029 x $106,800 = $3,097.20

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