Question

Paul got his first job in 2010. In that year, Social Security tax was 6.2% of income up to $95,000. Medicare tax was 1.45%. If Paul earned $75,460 in 2010, how much did he pay for Social Security and Medicare taxes?

Answer 1

Paul paid $4,676.72 for Social Security tax and $1,094.57 for Medicare tax in 2010.

Step-by-step explanation:

To find out how much Paul paid for Social Security and Medicare taxes, we need to calculate the amounts for each tax separately and then add them together.

For Social Security tax, we multiply Paul's income by the tax rate: 75,460 x 0.062 = $4,676.72

For Medicare tax, we also multiply Paul's income by the tax rate: 75,460 x 0.0145 = $1,094.57

Therefore, Paul paid $4,676.72 for Social Security tax and $1,094.57 for Medicare tax in 2010.