Answer to Question #180810 in Financial Math for Heather Angus

Question

If your earned income for 2021 will be $242,432, Calculate what you will pay in Social Security and Medicare taxes if Social Security is taxed at 6.2% at a maximum taxable income of $142,800 and Medicare is taxed at 1.45%

Answer 1

Social security tax

$Social security tax= 0.062\times142,800=8,853.6$

Medicare tax

$Medicare tax=0.0145\times242,432=3,515.26$