To calculate Frans Montag's Social Security tax, you'll need to follow these steps:
1. Determine her total earnings.
2. Calculate her regular earnings (up to 40 hours).
3. Calculate her overtime earnings (hours worked beyond 40).
4. Calculate the Social Security tax on her total earnings.
Let's break it down:
1. Total Earnings:
Frans worked 52.6 hours, and her hourly rate is $8.50.
Total Earnings = 52.6 hours * $8.50/hour = $447.10
2. Regular Earnings (up to 40 hours):
Frans worked 40 hours at her regular rate of $8.50 per hour.
Regular Earnings = 40 hours * $8.50/hour = $340.00
3. Overtime Earnings (hours worked beyond 40):
Frans worked 52.6 hours - 40 hours = 12.6 hours of overtime.
Overtime Earnings = 12.6 hours * $8.50/hour * 1.5 (time and a half for overtime) = $160.65
4. Social Security Tax:
The Social Security tax rate for employees in 2021 was 6.2% of their total earnings up to a certain income limit (the FICA maximum).
To calculate the Social Security tax, you need to find the total earnings subject to Social Security tax, which is the minimum of:
- The FICA maximum (for 2021, it was $142,800), or
- Frans's total earnings ($447.10 regular earnings + $160.65 overtime earnings)
In this case, Frans's total earnings are below the FICA maximum, so you'll use her total earnings:
Social Security Tax = Total Earnings * Social Security Tax Rate
Social Security Tax = ($447.10 + $160.65) * 0.062 (6.2%)
Social Security Tax = $607.75 * 0.062
Social Security Tax ≈ $37.67
So, Frans Montag's Social Security tax for the week is approximately $37.67.