Calculate the Monthly Social Security and Medicare Withholding for the Employee

question 19

Short Answer

Calculate the monthly social security and Medicare withholding for the employee, rounding to nearest cent (Social security tax is 6.2% of wages up to $106,800. Medicare tax is 1.45% of all wages): Employee $\quad$ Year to Date Earnings $\quad$ Current Month $\quad$ Social Security Medicare $\begin{array} { l l l } \text { Arthur, H. } && \$ 59,610 &&& \$ 5,927 \end{array}$

---

Definitions:

Receivable

Amounts owed to a company by its customers or debtors for goods or services delivered that have not yet been paid.

Pooling of Interests Transaction

A method used in accounting for business mergers in which the assets and liabilities of the merging companies are combined using their book values.

Book Value

The net value of a company's assets minus its liabilities, representing the equity value of the company from an accounting perspective.

Fair Value

The price at which an asset could be bought or sold or a liability settled, between knowledgeable, willing parties in an arm's length transaction.