Question

To date, Ty has cumulative earnings of $107,600. This week he is paid $3,000. What's the total amount of social security tax for this week? Assume a rate of 6.2% on $110,100 for social security and 1.45% for Medicare.

A. $186.00
B. $155.00
C. $180.00
D. $57.66

Answer 1

Option A. $186.00

Explanation:

Ty is paid this week = $3,000

social security tax ( 6.2%) and medicare tax (1.45%) is called FICA tax, but we have to calculate only social security tax for the weekly pay.

Therefore,

6.2% of 3,000 =
`(6.2)/(100)` × 3000

= 0.062 × 3000 = 186.00

The total amount of social security tax for this week is $186.00

Option A. $186.00

Answer 2

Ty's social security tax is
6.2% * $3000 = $186.00

The best choice is ...
A. $186.00