Question

Carolyne is paid $1,000.00 biweekly. This year, to date, she has earned $25,300.00. What will be the total deduction

for Social Security and Medicare taxes on her next paycheck? (Social Security tax is 6.2% of gross wages up to
$128,400. Medicare tax is 1.45% of all gross wages.)

Answer 1

Carolyne's total deduction for Social Security and Medicare taxes on her next paycheck will be $76.50, with $62.00 for Social Security and $14.50 for Medicare.

Step-by-step explanation:

To calculate the total deduction for Social Security and Medicare taxes on Carolyne's next paycheck, we will use her biweekly gross wage of $1,000.00. We apply the Social Security tax rate of 6.2% and the Medicare tax rate of 1.45% to her gross wages.

Here is the breakdown:

• Social Security tax = $1,000.00 × 6.2% = $62.00
• Medicare tax = $1,000.00 × 1.45% = $14.50

Carolyne's total deductions for Social Security and Medicare on her next paycheck will be the sum of these amounts:

Total Payroll Tax Deduction = Social Security tax + Medicare tax = $62.00 + $14.50 = $76.50