Question: Determining payroll tax withholding Information taken from a semimonthly payroll is given in the Working Papers. Work this problem independently.
1. For each employee, determine the federal income tax that must be withheld. Use the tax withholding tables in this lesson.
2. Calculate the amount of social security tax and Medicare tax that must be withheld for each employee. Use a social security tax rate of 6.2% and a Medicare tax rate of 1.45%. None of the employees has accumulated earnings greater than the tax base.