The president of your company, Mr. Wilson, has explained to you that the vice president position will have a salary of $94,000. Assuming that you are single and receive no deduction or any other credits, Mr. Wilson has asked you to calculate the total you will pay in income, Social Security, and Medicare taxes for a salary of $94,000. The current income tax table is as follows:
Schedule X - Single
If taxable income is over this amount:
But not over this amount:
The tax is this:
$0
$7,550
10% of the amount over $0
$7,550
$30,650
$755 plus 15% of the amount over $7,550
$30,650
$74,200
$4,220.00 plus 25% of the amount over $30,650
$74,200
$154,800
$15,107.50 plus 28% of the amount over $74,200
$154,800
$336,550
$37,675.50 plus 33% of the amount over $154,800
$336,550
no limit
$97,653.00 plus 35% of the amount over $336,550
The tax rate on Social Security is 6.2%. The tax rate on Medicare is 1.45%.
For this assignment, you must submit a report consisting of 600-800 words in which you describe in detail the amount you will pay in income, Social Security, and Medicare taxes for a salary of $94,000. The report must address what income, Social Security, and Medicare taxes are and why U.S. citizens must pay them. Also, you must submit an Excel file or document showing the correct calculations and how the calculations were made