So there is a deduction of 6.2% of the first $113,000.00 and 1.45% of all annual earnings for medicare taxes.
Randy earns a monthly gross salary of $3,600.00. So Randy makes:
[tex]3600 \times 12=43,200[/tex] dollars annually.
Now,
Randy's this month's Social Security tax withholding will be given by 6.2% of his gross monthly salary that is $3,200.00.
[tex]\frac{6.2}{100} \times 3600=223.20[/tex]
So, month's Social Security tax withholding is $223.20.
Now this month's Medicare tax withholding is given by 1.45% of his monthly gross salary.
That is:
[tex]\frac{1.45}{100} \times 3600=52.20[/tex]
So, month's Medicare tax withholding is $52.20.
