Question

Keniya is paid 6.5% commission on sales. Last week, she had sales of $55,800.00. Find her Social Security tax, Medicare tax, State tax, and Local tax (write the answers in 2 decimal places and with no commas).

a) Social Security tax: $3637.00, Medicare tax: $1089.00, State tax: $271.13, Local tax: $541.25
b) Social Security tax: $3637.50, Medicare tax: $1089.50, State tax: $271.25, Local tax: $541.50
c) Social Security tax: $3637.75, Medicare tax: $1089.75, State tax: $271.38, Local tax: $541.75
d) Social Security tax: $3638.00, Medicare tax: $1090.00, State tax: $271.50, Local tax: $542.00

Answer 1

The calculations for Social Security tax and Medicare tax based on Keniya's sales do not match any of the options provided in the student's question. Social Security tax should be $224.17 and Medicare tax should be $52.46. State and Local tax percentages are not specified, hence accurate amounts cannot be provided.

Step-by-step explanation:

The question relates to calculating various taxes based on Keniya's gross income from sales commissions. To find the correct amounts for Social Security tax, Medicare tax, State tax, and Local tax, we apply their respective percentages to Keniya's sales commissions.Calculating TaxesSocial Security tax is calculated at 6.2% of Keniya's gross income, which in her case is 6.5% of her sales amounting to $55,800.00. We calculate Medicare at 1.45% of her gross income. However, the State and Local taxes provided in the question do not specify exact percentages, hence we cannot verify or calculate the correct amounts for those components.

Using the figures provided, None of the options (a, b, c, or d) for Social Security tax and Medicare tax match the expected calculations as follows:Social Security tax = $55,800.00 * 6.5% * 6.2% = $224.17Medicare tax = $55,800.00 * 6.5% * 1.45% = $52.46Since the calculations for Social Security and Medicare taxes do not match the options provided in the original question, it seems there may be an error. Additionally, without specific percentages for State and Local taxes, we cannot provide accurate figures for those.