Question

Oliver earns $45,440 a year and receives his pay on a semimonthly basis. How much does he pay for social security tax, medical tax, and what is the total monthly deduction?

Answer 1

Oliver's monthly deductions for social security tax and medical tax amount to $289.78.

Step-by-step explanation:

To calculate the deductions and taxes for Oliver's semimonthly pay, we need to first determine the gross monthly income. Since he earns $45,440 a year, his gross monthly income is $45,440 / 12 = $3,786.67.

For Social Security tax, he will pay 6.2% of his gross monthly income. So, the Social Security tax deduction will be 6.2% x $3,786.67 = $234.88.

For Medicare tax, he will pay 1.45% of his gross monthly income. So, the Medicare tax deduction will be 1.45% x $3,786.67 = $54.90.

To calculate the total monthly deduction, we need to add the Social Security and Medicare tax deductions. So, the total monthly deduction for Oliver will be $234.88 + $54.90 = $289.78.