A paving company has 24 employees, 15 with gross earnings of $355 per week and nine with gross earnings of $395 per week. What is the total social security and Medicare tax (in $) the company must send to the Internal Revenue Service for the first quarter of the year?

To calculate the total Social Security and Medicare tax for the first quarter of the year, we'll use the following rates for 2024:

- Social Security tax rate: 6.2%
- Medicare tax rate: 1.45%

### Steps:
1. **Determine weekly gross earnings for both groups of employees**:
   - 15 employees earn $355 per week.
   - 9 employees earn $395 per week.

2. **Calculate total weekly earnings**:
   - Total weekly earnings for 15 employees:  
     $ 15 \times 355 = 5,325 $
   - Total weekly earnings for 9 employees:  
     $ 9 \times 395 = 3,555 $

   Total weekly earnings for all employees:  
   $ 5,325 + 3,555 = 8,880 $

3. **Calculate quarterly earnings**:
   Since there are 13 weeks in a quarter, we calculate the total quarterly earnings:  
   $ 8,880 \times 13 = 115,440 $

4. **Calculate Social Security tax**:
   The Social Security tax is 6.2% of the total quarterly earnings:  
   $ 115,440 \times 0.062 = 7,158.28 $

5. **Calculate Medicare tax**:
   The Medicare tax is 1.45% of the total quarterly earnings:  
   $ 115,440 \times 0.0145 = 1,675.88 $

6. **Total Social Security and Medicare tax**:
   Add the Social Security and Medicare taxes:  
   $ 7,158.28 + 1,675.88 = 8,834.16 $

### Conclusion:
The total Social Security and Medicare tax the company must send to the IRS for the first quarter of the year is **$8,834.16**.

---

Do you want any further details or have any questions?

Here are 5 related questions:
1. How do Social Security and Medicare tax rates change annually?
2. How do you calculate taxes for employees with different earnings throughout the year?
3. What are the limits for Social Security tax?
4. What happens if an employee reaches the wage base limit for Social Security in the middle of the year?
5. How do businesses report and pay Social Security and Medicare taxes?

**Tip:** Keep track of tax rate changes every year, as these can affect your company's tax calculations significantly!

Learn how to calculate the total Social Security and Medicare tax for a company with employees earning different weekly wages. This step-by-step solution shows how to calculate total quarterly earnings, apply tax rates, and determine the total amount to be paid to the IRS. Suitable for students in Grades 10-12.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation