Mike Smith is a college football coach making a base salary of $840,000 a year ($70,000 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 base amount is $118,500.
a. Compute how much will be withheld during the year for Coach Smith's Social Security and Medicare. (Round your answer to the nearest dollar amount.)
b. Through what month will Social Security be withheld?
April
March
February
January
c. What additional amount will the employer need to contribute? (Round your answer to the nearest dollar amount.)