Question

PLEASE ANSWER ASAP!!

Fred earned $5,000 during the month of June.

Use the paycheck statement to find the missing amounts and percent rates of the taxes Fred paid.

Answer 1

Fred paid US$ 310 to Social Security as a payroll tax

Fred paid US$ 72.50 to Medicare as a payroll tax

Fred paid 18% of his income to the Federal government as an income tax

Fred paid 5% of his income to the state government as an income tax

Explanation:

Fred's earnings in June were $ 5,000

A. Payment to Social Security

5,000 * 6.2% = 5,000 * 0.062 = 310

B. Payment to Medicare

5,000 * 1.45% = 5,000 * 0.0145 = 72.50

C. Federal Income Tax

900/5,000 = 0.18 = 18%

D. State Income Tax

250/5,000 = 0.05 = 5%