Question

please give the correct answers to the questions marked wrong. please give the correct answer

Sebastian Wayne's filing status is married filing jointly, and he has earned gross pay of $3,820. Each period he makes a 401(k) contribution of 10% of gross per and contributes $150 to a dependent care flexible spending account. His current year taxable eamings for Social Security tax and Medicare tax, to date, are $92,500. Social Security tax = $ 2,366.84 Medicare tax = $ 55.39 X X Lukas Douglas' filing status is married filling separately, and he has earned gross pay of $2.000. Each period he makes a 403(b) contribution of 12% of gross pay and contributes $75 to a cafeteria plan. His current year taxable earnings for Social Security tax and Medicare tax, to date, are $128,100. X Social Security tax = $ 124.00 Medicare tax = $ 29.00 X

Answer 1

Year for which this question pertains to has not been mentioned; Hence answers are provided for years from 2015 thru 2020. Please fill the answer as appropriate to the year it relates to (.e.) all columns are not the answers; take only the column for which year, this question applies to. First table shows the rules applicable for social security tax, medicare tax and additional medicare tax (i.e.) % and threshold limits for different years.

Ref 2020 2019 2018 2017 2016 2015 Year Social Security Tax Base Limit 137,700 6.20% 8,537.40 132,900 6.20% 8,239.80 128,400 6.20% 7,960.80 127,200 6.20% 7,886.40 118,500 6.20% 7,347.00 118,500 6.20% 7,347.00 Maximum contribution Medicare Tax 1.45% 1.45% 1.45% 1.45% 1.45% 1.45% Additional Medicare Tax 0.90% 0.90% Single (threshold limit) Married Filing Jointly (threshold limit) Married Filing Separately (threshold limit) 0.90% 200,000 250,000 125,000 0.90% 200,000 250,000 125,000 0.90% 200,000 250,000 125,000 0.90% 200,000 250,000 125,000 250,000 125,000 250,000 125,000

Answer to Question No. 3:

YTD earnings were $ 92,500 plus current year earnings were less than the threshold limit for social security taxes. Also the employee status is married filing jointly and thus he is not eligible for additional medicare tax. Based on this, calculations are provided in below table for different years:

Question # 3 Year YTD Earnings Earned Gross Pay (Current period) Less: 401K Contribution (10%of gross pay) Less: Flexible Spening Amount (FSA) Gross pay after deductions YTD Earnings for Social Security tax Social security tax eligibility Medicare tax eligibility Additional medicare tax eligibility Social security tax (Gross pay of $ 3288 * 6.2%) Medicare tax (Gross pay of $ 3288 * 1.45%) Ref 2020 2019 92,500 92,500 B 3,820 3,820 382 382 150 150 E=B-C-D 3,288 3,288 F=A+E 95,788 95,788 Based on F Eligible Eligible Based on F Eligible Eligible Based on F Not eligible Not eligible E*6.2% 203.86 203.86 E*1.45% 47.68 47. 68 2018 | 2017 | 2016 2015 92,500 92,500 92,500 92,500 3,820 3,820 3,820 3,820 382 382 382 382 150 150 150 150 3,288 3,288 3,288 3,288 95,788 95,788 95,788 95,788 Eligible Eligible Eligible Eligible Eligible Eligible Eligible Eligible Not eligible Not eligible Not eligible Not eligible 203.86 203.86 203.86 203.86 4 7.68 47.68 47.68 47.68

Answer to Question No. 4:

YTD earnings were $ 128,100 plus current year earnings were more than the threshold limit for social security taxes if year pertains to 2015, 2016 or 2017; but less than the threshold limit for years 2018, 2019 & 2020. Also the employee status is married filing separately and thus he is eligible for additional medicare tax. Based on this, calculations are provided in below table for different years:

Question #4 Year Ref B YTD Earnings Earned Gross Pay (Current period) Less: 401K Contribution (10%of gross pay) Less: Flexible Spening Amount (FSA) Gross pay after deductions YTD Earnings for Social Security tax 2020 128,100 2,000 240 75 1,685 129,785 75 1 695 E=B-C-D F=A+E 2019 2018 2017 2016 2015 128,100 128,100 128,100 128,100 128,100 2,000 2,000 2,000 2,000 2,000 240 240 240 240 240 75 75 75 75 1,685 1,685 1,685 1,685 1,685 129,785 129,785 129,785 129,785 129,785 Eligible upto $ 300 only (i.e.) $ 128400 minus YTD earnings of Eligible $ 128100) Not eligible Not eligible Not eligible Eligible Eligible Eligible Eligible Eligible Eligible Eligible Eligible Eligible Eligible 104.47 18.60 24.43 24.43 24.43 24.43 24.43 15.17 15.17 15.17 15.17 15.17 39.60 39.60 39.60 39.60 39.60 Social security tax eligibility Medicare tax eligibility Additional medicare tax eligibility Social security tax Medicare tax Additional medicare Total Medicare tax Based on F Based on F Based on F E*6.2% E*1.45% E*0.9% Eligible Eligible Eligible 104.47 24.43 15.17 39.60