Question

1. What is the amount of social security tax for a gross pay amount of $944?

A. $15.23
B. $58.53
C. $152.26
D. $585.26

2. What is the amount of Medicare tax for a gross pay amount of $944?

A. $13.69
B. $65.10
C. $136.88
D. $145.00

Answer 1

1. 58.53

2. 13.69

Explanation:

1. 944 x 0.062 = 58.528

2. 944 * 0.0145 = 13.688

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Answer 2

1. The social security pay for year 2017 is 6.2% each for the employee and the company, making it 12.4% in total. To solve, we simply multiply the decimal equivalent of 12.4% to $944.
(0.124)($944) = $117.0566
The employee should pay only 6.2%. So, the answer is letter B.

2. The Medicare tax is 1.45%
(0.0145)($944) = $13.688
The answer is letter A.