Solve the following problem using 6.2%, up to $106,800, for social security tax and 1.45%, no wage limit, for Medicare tax.
Kristy Dunaway has biweekly gross earnings of $1,750. What are her total social security and Medicare tax withholdings for a whole year?
Solve the following problem using 6.2%, up to $106,800, for social security tax and 1.45%, no wage limit, for Medicare tax.
Kristy Dunaway has biweekly gross earnings of $1,750. What are her total social security and Medicare tax withholdings for a whole year?
Social security: $
Medicare: $
Social Security: 2821
Medicare: 659.75
Solve the following problem using 6.2%, up to $106,800, for social security tax and 1.45%, no wage limit, for Medicare tax.
Kristy Dunaway has biweekly gross earnings of $1,750. What are her total social security and Medicare tax withholdings for a whole year?
Social security: $
Thanks Natasha
Solve the following problem using 6.2%, up to $106,800, for social security tax and 1.45%,Kristy Dunaway has biweekly gross earnings of $1,750. What are her total social security taw withholdings
To find Kristy Dunaway's total social security and Medicare tax withholdings for a whole year, we can break down the problem step-by-step.
1. Calculate the annual gross earnings:
Kristy's biweekly gross earnings are $1,750.
There are 26 biweekly pay periods in a year (52 weeks / 2).
So, Kristy's annual gross earnings are $1,750 * 26 = $45,500.
2. Calculate the social security tax withholding:
The social security tax rate is 6.2%.
However, there is a wage limit of $106,800 for social security tax.
To determine how much of Kristy's earnings are subject to social security tax, we need to determine if her earnings exceed the wage limit.
If Kristy's annual gross earnings are less than or equal to the wage limit, then the entire amount is subject to social security tax.
If Kristy's annual gross earnings exceed the wage limit, then only the wage limit amount is subject to social security tax.
In this case, Kristy's annual gross earnings are $45,500, which is less than the wage limit of $106,800.
Therefore, her total social security tax withholding for the year is $45,500 * 0.062 = $2,831.
3. Calculate the Medicare tax withholding:
The Medicare tax rate is 1.45%.
Unlike social security tax, there is no wage limit for Medicare tax. All of Kristy's earnings are subject to Medicare tax.
Therefore, her total Medicare tax withholding for the year is $45,500 * 0.0145 = $660.25.
Thus, Kristy Dunaway's total social security and Medicare tax withholdings for a whole year are $2,831 for social security tax and $660.25 for Medicare tax.