business expenses\nsmall business expenses\nin this spreadsheet, expenses are listed in column a and their…
business expenses\nsmall business expenses\nin this spreadsheet, expenses are listed in column a and their amounts are in column b.\nexpense type\tamount\nrent\t$2,800.00\nliability insurance\t$350.00\nproperty insurance\t$250.00\nbooks and supplies\t$1,600.00\nwages\t$4,200.00\nutilities\t$500.00\nhealth insurance\t$650.00\nworkers compensation insurance\t$300.00\nadvertising\t$550.00\noffice supplies\t$150.00\nsocial security and medicare taxes (formula)\ntotal fixed expenses (formula)\ntotal variable expenses (formula)\ntotal monthly expenses (formula)\nwhich formula would you use in cell b12 to calculate the social security and medicare taxes (7.65%) on the monthly wages listed in cell b6?\n= b6/0.0765\n= b6/0.765\n= b6 * 0.765\n= b6 * 0.0765
Answer
Explanation:
Step1: Recall tax - calculation formula
To find a percentage of a number, we multiply the number by the percentage in decimal form.
Step2: Convert percentage to decimal
The Social Security and Medicare tax rate is 7.65%, which in decimal form is 0.0765.
Step3: Determine the formula
To calculate 7.65% of the monthly wages in cell B6, we multiply the value in B6 by 0.0765. So the formula is =B6*0.0765.
Answer:
=B6*0.0765