487,006 views
26 votes
26 votes
Rate. Base

Social Security 6.20%. $128,400
Medicare. 1.45. No base

A. $74.40
B. $744
C. $72.40
D. $47.40

33. Based on the schedule shown, calculate Social Security tax for Betsy at $1,200

User Seidah
by
3.2k points

1 Answer

13 votes
13 votes

Answer: The correct answer is therefore A) $74.40.

Step-by-step explanation: To calculate Social Security tax for Betsy at $1,200, we need to find the amount of tax that is due on that amount of income. According to the schedule, Social Security tax is applied at a rate of 6.2% on income up to $128,400. Therefore, the amount of tax due on $1,200 of income would be $1,200 x 6.2% = $<<12006.2.01=74.4>>74.4.

User Sergei Kozelko
by
3.3k points