What will be the total deduction for social SECURITY and MEDICARE taxes on Amishi's next weekly paycheck of $700 if she has already earned $22,400 this year? Social security tax is 6.2% of wages up to $106,800. MEDICARE tax is 1.45% of all wages.
(700 * 0.062) + (700 * 0.0145) = ?
To calculate the total deduction for social security and Medicare taxes on Amishi's next weekly paycheck of $700, we need to consider the earnings she has already made this year.
First, let's calculate the social security tax. The social security tax is 6.2% of wages up to $106,800. Since Amishi has already earned $22,400 this year, we need to determine if this amount is within the taxable limit.
Step 1: Check if earnings are within the taxable limit.
Amishi has earned $22,400 this year, which is below the taxable limit of $106,800. So her total earnings are eligible for social security tax.
Step 2: Calculate social security tax.
Multiply Amishi's weekly paycheck, $700, by the social security tax rate of 6.2%:
Social security tax = $700 * 6.2% = $43.40
Next, let's calculate the Medicare tax. The Medicare tax rate is 1.45% of all wages, and there is no taxable limit for Medicare tax.
Step 3: Calculate Medicare tax.
Multiply Amishi's weekly paycheck, $700, by the Medicare tax rate of 1.45%:
Medicare tax = $700 * 1.45% = $10.15
Finally, calculate the total deduction for social security and Medicare taxes by adding the social security tax and Medicare tax:
Total deduction = Social security tax + Medicare tax
Total deduction = $43.40 + $10.15 = $53.55
Therefore, the total deduction for social security and Medicare taxes on Amishi's next weekly paycheck of $700 will be $53.55.