Answer:
a. Compute how much will be withheld during the year for Coach Samson's Social Security and Medicare.
the current social security cap (for 2020) is $137,700. This means that $137,700 x 6.2% = $8,537.40 will be withheld during the year.
but since this question seems to be a little old (2018 actually), the maximum withholding should be $128,400 x 6.2% = $7,960.80 for social security
Medicare withholdings have no limit, but instead people earning above $200,000 must pay an additional 0.9%:
Medicare withholdings = ($200,000 x 1.45%) + ($452,800 x 2.35%) = $13,540.80
b. What matching amount will the employer need to contribute?
the employer must pay the $7,960.80 in social security taxes, but the employer only pays 1.45% for medicare taxes = $652,800 x 1.45% = $9,465.60
