You have the following information:
- Scott's montly salary is $2,296
- Social security tax rate is of 7.65%
In order to calculate how much is withheld from Scott's pay each month, you have to calculate the 7.65% of the Scott's salary. You proceed as follow:
(7.65/100)(2,296) = (0.0765)(2,296) = 175.64
that is, the percentage is divided by 100. Next, the previous result is multiplied by the salary. In this way you can calculate the amount of money which corresponds to a 7.65%
Hence, $175.64 are withhold from the Scott's salary