Calculate the Social Security and Medicare tax that would be applied to an annual salary of $125,000. Use $106,800 for maximum taxable earnings. (Soc Sec 6.2%, taxed up to $106,800 and Medicare 1.45%).

Social Security tax applies only to the first $106,800: $106,800 × 0.062 = $6,621.60. Medicare tax applies to the full $125,000 salary: $125,000 × 0.0145 = $1,812.50, so the correct choice is D, with Social Security tax of $6,621.60 and Medicare tax of $1,812.50.

AI-written and checked against the verified answer.