In 2016, Lew earned wages of $386,724

a. What is the amount of Social Security tax withheld from his salary?
b. What is the amount of Medicare tax (including surtax) withheld from his salary?

a. Social Security maximum of $118,500 × 6.2 % = $7,347
b. Medicare rate of 1.45% × $386,724 = $5,607;
Medicare surtax of 0.9% x ($386,724 - $200,000) = $1,681
$5,607 + $1,681 = $7,288