What will be the total deduction for social security and Medicare taxes on Juanita's next weekly paycheck of $720 if she has already earned $10,800 this year? Social security tax is 6.2% of wages up to $106,800. Medicare tax is 1.45% of all wages.
Posted by Anonymous on Saturday, March 8, 2014 at 11:59pm.
What will be the total deduction for social security and Medicare taxes on Juanita's next weekly paycheck of $720 if she has already earned $10,800 this year? Social security tax is 6.2% of wages up to $106,800. Medicare tax is 1.45% of all wages.
To calculate the total deduction for social security and Medicare taxes on Juanita's next weekly paycheck, we need to follow these steps:
1. Determine Juanita's current annual wages by adding her earnings so far ($10,800) to her upcoming weekly paycheck ($720 x 1 week = $720).
Total annual wages = $10,800 + $720 = $11,520.
2. Calculate the social security tax deduction. Social security tax is 6.2% of wages up to a certain threshold ($106,800 for this year).
Since Juanita's total annual wages are below this threshold, we can multiply her total annual wages by the tax rate.
Social security tax deduction = $11,520 x 6.2% = $713.44.
3. Calculate the Medicare tax deduction. Medicare tax is 1.45% of all wages, regardless of the threshold.
We can multiply Juanita's total annual wages by the Medicare tax rate to find the deduction.
Medicare tax deduction = $11,520 x 1.45% = $167.04.
Therefore, the total deduction for social security and Medicare taxes on Juanita's next weekly paycheck of $720 will be $713.44 + $167.04 = $880.48.