What will be the total deduction for social security and Medicare taxes on Rony's next semimonthly paycheck of $3,960, if she has already earned $42,560 this year? (Social security tax is 6.2% of gross wages up to $106,800. Medicare tax is 1.45% of all gross wages.)
302.94
Well, Rony, it looks like Uncle Sam wants to have a little fun with your paycheck! Let's break it down, shall we?
First, let's calculate the social security tax. Since it's 6.2% of your gross wages up to $106,800, we'll take your semimonthly paycheck of $3,960 and multiply it by 6.2%. But hold your horses, because we need to check whether you've already exceeded the earnings cap of $106,800 this year. Since you've earned $42,560 so far, we're in luck – you haven't crossed that threshold yet!
So, 6.2% of $3,960 is $245.52. But don't forget that this is the amount you'll lose if you keep dancing beneath that $106,800 mark. Otherwise, the Social Security taxman will call it quits when you reach the cap.
Now, let's move on to Medicare taxes. It's a flat 1.45% of all your gross wages, with no pesky earnings cap. Therefore, 1.45% of $3,960 is $57.42 – a relatively small price to pay for a future filled with hospital waiting rooms and flu shots.
To find your total deduction, we simply add up these two figures: $245.52 + $57.42 = $302.94. Ta-da! That's your grand total deduction for Social Security and Medicare taxes on your next semimonthly paycheck. Enjoy the show!
To calculate the total deduction for social security and Medicare taxes on Rony's next semimonthly paycheck, we need to follow these steps:
Step 1: Calculate the social security tax
- The social security tax is 6.2% of gross wages up to $106,800.
- Rony has already earned $42,560 this year.
- This means she has $64,240 ($106,800 - $42,560) remaining of gross wages that is subject to social security tax.
- Calculate the social security tax on the remaining gross wages: $64,240 * 0.062 = $3,978.08.
Step 2: Calculate the Medicare tax
- The Medicare tax is 1.45% of all gross wages.
- Rony's next semimonthly paycheck is $3,960.
- Calculate the Medicare tax on the semimonthly paycheck: $3,960 * 0.0145 = $57.42.
Step 3: Calculate the total deduction for social security and Medicare taxes
- Add the amount calculated for social security tax in step 1 to the amount calculated for Medicare tax in step 2:
$3,978.08 + $57.42 = $4,035.50.
Therefore, the total deduction for social security and Medicare taxes on Rony's next semimonthly paycheck of $3,960, given she has already earned $42,560 this year, will be $4,035.50.
To calculate the total deduction for social security and Medicare taxes on Rony's next semimonthly paycheck of $3,960, we need to follow these steps:
Step 1: Determine the gross wages earned by Rony this year
Given that Rony has already earned $42,560 this year, we need to add the semimonthly paycheck of $3,960 to get the total gross wages earned.
Total gross wages = $42,560 + $3,960 = $46,520
Step 2: Calculate the social security tax deduction
The social security tax rate is 6.2% of gross wages, but it only applies up to a certain maximum limit. In this case, the maximum limit is $106,800.
So, if the total gross wages are below or equal to $106,800, we can calculate the social security tax deduction as follows:
Social security tax deduction = (6.2% / 100) * total gross wages
If the total gross wages exceed the maximum limit of $106,800, the social security tax will be capped at that limit.
Step 3: Calculate the Medicare tax deduction
The Medicare tax rate is 1.45% of all gross wages, and there is no maximum limit.
Medicare tax deduction = (1.45% / 100) * total gross wages
Step 4: Calculate the total deduction
To find the total deduction for social security and Medicare taxes, simply add the social security tax deduction and Medicare tax deduction together.
Total deduction = social security tax deduction + Medicare tax deduction
Using the provided information, we can now calculate the total deduction for social security and Medicare taxes on Rony's next semimonthly paycheck of $3,960.