Project: FICA Taxes (Empoyee and Employer)
As an employer you are responsible for withholding taxes and paying taxes assosciated with the employment of workers. An employer must withhold from the employee's paycheck Federal Insurance Contributions Act (FICA) is made up of two items, Social Security and Medicare taxes. For 2020, the Social Security tax rate is 6.2% on the first $137,700 wages plus tips paid. The Medicare tax rate is 1.45% on the first $200,000 wages and tips then 2.35% on wages and tips above $200,000.
The employeer must then pay additional Social Security tax of 6.2% up to the wage plus tip limit of $137,700. Additional Medicare taxes of 1.45% must be paied on all wages and tips. In addition Federal Unemployment Tax (FUTA) is 6.0% on the first $7,000 earned. Write a program that computes the annual taxes for someone who earns wages and tips. The program should accept two command line arguments, an annual wages and total tips for the year. Print the annual earnings (wages + tips), employee Social Security tax, employee Medicare tax, employer Social Security tax, employer Medicare tax and employer FUTA tax. Then print the net earnings (annual wages plus tips minus employee taxes) and the net contributions paid by employeer (wages plus employer FICA plus employer FUTA).