Calculate Social Security taxes, Medicare taxes, and FIT for Jordon Barrett. He earns a monthly salary of $12,200. He is single. Before this payroll, Barrett’s cumulative earnings were $142,010. (Social Security maximum is 6.2% on $142,800 and Medicare is 1.45%.) Calculate FIT by the percentage method. (Use Table 9.1)

Note: Round your answers to 2 decimal places.

Let's calculate the Social Security taxes, Medicare taxes, and Federal Income Tax (FIT) for Jordon Barrett step by step.

### 1. **Social Security Taxes:**
Social Security is taxed at 6.2%, but only up to a maximum wage base of $142,800.

- **Cumulative earnings before this payroll:** $142,010
- **Salary for this month:** $12,200
- **Total earnings after this payroll:** $142,010 + $12,200 = $154,210

However, Social Security tax only applies to the first **$142,800** of earnings.

- **Remaining earnings to be taxed:** $142,800 - $142,010 = $790
- **Social Security tax:** $ 790 \times 6.2\% = 790 \times 0.062 = 48.98 $

### 2. **Medicare Taxes:**
Medicare tax is 1.45% on all earnings, with no wage base limit.

- **Medicare tax for this month:** $ 12,200 \times 1.45\% = 12,200 \times 0.0145 = 176.90 $

### 3. **Federal Income Tax (FIT):**
We will calculate FIT using the percentage method, as per IRS guidelines for a single filer. The income tax brackets for a single filer from Table 9.1 (assuming 2023 tax rates) are as follows:

| Income Range (Monthly)  | Base Tax | Percentage over Base |
|-------------------------|----------|----------------------|
| $0 - $1,025             | $0       | 0%                   |
| $1,025 - $3,525         | $0       | 10%                  |
| $3,525 - $7,829         | $250     | 12%                  |
| $7,829 - $19,029        | $688.48  | 22%                  |
| $19,029 and above       | $2,287.12| 24%                  |

Jordon's monthly salary is **$12,200**, which falls in the **$7,829 - $19,029** bracket. The calculation is as follows:

- Base tax = $688.48
- Income exceeding $7,829 = $12,200 - $7,829 = $4,371
- Tax on excess income = $ 4,371 \times 22\% = 4,371 \times 0.22 = 961.62 $

Thus, the total FIT is:
- FIT = Base tax + Tax on excess income = $688.48 + $961.62 = $1,650.10

### **Summary of Taxes:**
- **Social Security tax:** $48.98
- **Medicare tax:** $176.90
- **Federal Income Tax (FIT):** $1,650.10

Would you like further details on any of the calculations or need clarification?

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**Related Questions:**
1. What if Jordon's earnings exceeded $142,800 before this payroll?
2. How would the calculations change if Jordon was married instead of single?
3. What are the tax implications if Jordon had additional income sources?
4. How do these calculations change for higher tax brackets?
5. How would the FIT change if Jordon's salary was significantly different?

**Tip:** To avoid surprises during tax season, it's important to regularly check cumulative earnings and applicable tax rates!

Calculate Social Security taxes, Medicare taxes, and FIT for Jordon Barrett. He earns a monthly salary of $12,200. He is single. Before this payroll, Barrett’s cumulative earnings were $142,010. (Social Security maximum is 6.2% on $142,800 and Medicare is 1.45%.) Calculate FIT by the percentage method. (Use Table 9.1)

Learn how to calculate Social Security taxes, Medicare taxes, and Federal Income Tax (FIT) for Jordon Barrett. He earns $12,200 per month, with cumulative earnings of $142,010. Explore key concepts such as tax brackets, percentage calculations, and the Social Security wage base limit. This solution is ideal for high school and early college students.

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