Question

For problems 1-3, use the Social Security tax rate of 6.2% on the first $97,500 earned and

Medicare tax rate of 1.45% on all earnings to solve the following problems.
1.) Richard has a gross monthly income of $3,400. His earnings to date for this year are
$54,000. How much is deducted this month for Social Security? How much for Medicare?

Answer 1

Social security : $210.8

Medicare: $49.3

Step-by-step explanation:

Social security tax and medicare are calculated based on the gross income.

Richards gross income for the months us $3,400

Social security tax will be

=6.2 % of $3400

=6.2/100 x 3400

=0.062 x 3400

=$210.8

Medicare tax will be

=1.45 % x $3400

=1.45/100 x 3400

=0.0145 x 3400

=$49.3