Student Solution

-->

"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

1 University

1 Course

1 Subject

Ch 34 Employment Law 1 Assignment

Ch 34 Employment Law 1 Assignment

Q 1) How much social security tax would the EMPLOYER be liable to pay to the federal government if he paid his sole employee $100,000 in wages during the current year? Please use whatever necessary outside sources you may need to verify the amount. 2) What if he paid his employee $1,000,000 during the year (you may assume that the employee is single)? 3) In each of the situations above what would the employer have to withhold from the EMPLOYEE'S paycheck in social security taxes? 4) Answer questions 1-3 for Medicare taxes. 5) True or False: Employer's pay for unemployment taxes by taking the tax out of the employee's paycheck.

View Related Questions

Solution Preview

6.2% of the wages of the employees had to be the percentage social security tax which had to be withheld by the employer (Clarkson, Miller & Cross, 2016). The maximum wage base would have to be $118,500. This contribution of the maximum wage base had to be matched for the year of 2016. The liability of the employer in terms of payment would be $100,000*6.2% = $6200 (Peters, 2018). This would be the payment for the sole employee because the employer would have to pay this amount for the social security tax.