Question

Issac earned a gross pay of $1,425.75 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social Security tax deducted from Joe's gross pay.

A.
$68.40

B.
$78.40

C.
$88.40

D.
$98.40

Answer 1

The correct answer is C. The amount of Social Security Tax deducted from Issac's gross pay is $88.40.

Explanation:

To determine the amount of Social Security tax deducted from Issac's weekly payment, taking into account that he has earned $ 1,425.75 and that the discount is 6.2% of said amount, the following calculation must be made:

(1,425.75 / 100) x 6.2 = X

14.2575 x 6.2 = X

88.3965 = X

Therefore, the amount of Social Security Tax deducted is $88.40.