Question

Suppose a college football coach makes a base salary of $2,400,000 a year ($200,000 per month). Employers are required to withhold a 6.2% Social Security tax up to a maximum base amount and a 1.45% Medicare tax with no maximum. Assuming the Social Security maximum base amount is $128,400, how much will be withheld during the year for the coach's Social Security and Medicare taxes? (Round your answers to the nearest dollar amount.)

Answer 1

Answer:

The Social Security will be withheld only in January.

Please find the detailed answer as follows:

Explanation:

According to the actual regulation, as the coach monthly salary is $200000 exceeds the social security amount of $128400 the Social security can be withheld only till January.