Ask Question
20 March, 20:00

Calculate the Social Security and Medicare deductions for the following employee (assume a tax rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare) : (Round your answers to the nearest cent.)

+4
Answers (1)
  1. 20 March, 23:23
    -1
    Social Security tax = $7,960.80

    Medicare tax = $1,861.80

    Explanation:

    Let's begin by listing out the information given:

    Social Security tax rate = 6.2%,

    Medicare tax rate = 1.45%,

    Income = $128,400

    To calculate for the deductions (tax), we use the formula:

    Tax = Tax rate * Income

    For Social Security

    Tax = Tax rate * Income

    Tax = 6.2% * $128,400

    T = 0.062 * $128,400

    T = $7,960.80

    ∴ $7,960.80 of the employee's income is deducted for Social Security tax

    For Medicare

    Tax = Tax rate * Income

    Tax = 1.45% * $128,400

    T = 0.0145 * $128,400

    T = $1,861.80

    ∴ $1,861.80 of the employee's income is deducted for Medicare tax
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Calculate the Social Security and Medicare deductions for the following employee (assume a tax rate of 6.2% on $128,400 for Social Security ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers