A) To calculate how much money Sam brings home annually, we need to first find out how much he earns after taxes each month.
Federal tax = 10.5% of $6000 = $630
State tax = 4.25% of $6000 = $255
Total tax deductions = $630 + $255 = $885
Sam's take-home pay each month = $6,000 - $885 = $5,115
To find out how much he brings home annually, we can multiply his monthly take-home pay by 12:
Annual take-home pay = $5,115 x 12 = $61,380
B) Social security tax rate is 6.2%, and the maximum amount of income subject to social security tax in 2023 is $147,000.
So, Sam's monthly social security tax payment can be calculated as:
Social security tax = 6.2% of min($6000, $147,000) = 6.2% of $6000 = $372
Therefore, Sam pays $372 in social security tax each month.
C) Medicare tax rate is 1.45% of all earnings, with no maximum income limit.
So, Sam's annual Medicare tax payment can be calculated as:
Medicare tax = 1.45% of $6000 x 12 = $1,044
Therefore, Sam pays $1,044 in Medicare tax annually