Question

Mai's gross pay is $7.260. How much of her gross pay will be deducted for FICAtaxes? (The social security tax rate is 6.2% and the medicare tax rate is 1.45%)Round to the hundredths place, if the answer doesn't have a hundredths placeinclude a zero so the answer does have a hundredths place.

Answer 1

Given: Gross pay =$7.260

Social tax =6.2%

Medicare tax = 1.45%

Social tax amount is:

`\begin{gathered} =(6.2)/(100)*7.260 \\ =0.45012 \end{gathered}`

Medicare tax amount is:

`\begin{gathered} =(1.45)/(100)*7.260 \\ =0.10527 \end{gathered}`

Total tax amount is:

`\begin{gathered} =0.45012+0.10527 \\ =0.55539 \end{gathered}`

Gross pay after taxes.

`\begin{gathered} =7.260-0.55539 \\ =6.70461 \end{gathered}`