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.)

A. $42,761.
B. $183,600.
C. $34,800.
D. None of the other answer choices are correct.


Answer: A

Business

You might also like to view...

If the proceeds from the sale of bond investments exceed the carrying amount of the bonds, a gain is realized

a. True b. False Indicate whether the statement is true or false

Business

Product, price, place, and promotion make up the elements of a firm's marketing mix

Indicate whether the statement is true or false

Business

Channel assembly, which sends components and modules to be assembled by a distributor, treats these distributors as manufacturing partners

Indicate whether the statement is true or false

Business

Discuss the encounter stage of the socialization process.

What will be an ideal response?

Business