Problema Solution
Fandango Furniture Manufacturing, Inc. has 40 employees on the assembly line, each with gross earnings of $325 per week. What are the total combined social security and Medicare taxes that should be withheld from the employees’ paychecks each week?
Answer provided by our tutors
paychecks each week will be as follows : $325 x 40 = $13,000 (gross earnings /week)
$13,000 x 0.062 = $806 (total combined social security)
$13,000 x 0.0145 = $188.50 (total medicare taxes)
therefore paychecks each week is $806 + $188.50 = $994.50 / 40 = $24.86