2. (2 points) what will be the total deduction for social security and medicare taxes on austins next…
2. (2 points) what will be the total deduction for social security and medicare taxes on austins next semimonthly paycheck of $5,510, if he has already earned $42,560 this year? (social security tax is 6.2% of gross wages up to $176,100. medicare tax is 1.45% of all gross wages.)
Answer
Explanation:
Step1: Calculate social - security tax
The social - security tax rate is 6.2% of gross wages. The gross wage for the paycheck is $5,510. So the social - security tax is $5510\times0.062 = 5510\times\frac{6.2}{100}=$341.62$.
Step2: Calculate medicare tax
The medicare tax rate is 1.45% of gross wages. For a gross wage of $5,510, the medicare tax is $5510\times0.0145 = 5510\times\frac{1.45}{100}=$79.895$.
Step3: Calculate total deduction
The total deduction for social - security and medicare taxes is the sum of the social - security tax and the medicare tax. So, $341.62 + 79.895=$421.515$.
Answer:
$421.52$ (rounded to the nearest cent)