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15 November, 12:12

Sabrina Duncan had gross earnings for the pay period ending 10/15/16 of $5,835. Her total gross earnings as of 9/30/16 were $104,400. If Social Security taxes are 6.2% on a maximum earnings of $106,800 per year, Sabrina's Social Security withheld from her 10/15/16 paycheck would be:A. $212.97B. $361.77C. $205.08D. $148.80

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  1. 15 November, 13:31
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    option (A) $212.97

    Explanation:

    Data provided in the question:

    Gross earnings for the pay period ending 10/15/16 = $5,835

    Total gross earnings as of 9/30/16 = $104,400

    Social Security tax rate = 6.2%

    Now,

    Total earnings

    = Gross earnings for the pay period ending 10/15/16 + Total gross earnings as of 9/30/16

    = $5,835 + $104,400

    = $110,235

    since, The Social Security taxes are on a maximum earnings of $106,800 per year

    therefore,

    Sabrina's Social Security withheld from her 10/15/16 paycheck will be

    = (Total earnings - $106,800) * Social Security tax rate

    = ($110,235 - $106,800) * 0.062

    = $3,435 * 0.062

    = $212.97

    Hence,

    The answer is option (A) $212.97
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