Gary earned a gross pay of $1,047.30 last week. Using the fact that Social Security tax is 6.2% of gross pay, determine the amount of Social Security tax deducted from Gary’s gross pay.
a.
$6.49
0.062 * 1047.30 = 64.93
watch those decimal points!
To calculate the amount of Social Security tax deducted from Gary's gross pay, we need to multiply his gross pay by the tax rate (6.2%).
$1,047.30 x 0.062 = $64.88
Therefore, the amount of Social Security tax deducted from Gary's gross pay is $64.88.
To determine the amount of Social Security tax deducted from Gary's gross pay, you need to calculate 6.2% of his gross pay. Here's how you can do it:
Step 1: Convert the percentage to a decimal by dividing it by 100. So, 6.2% becomes 0.062.
Step 2: Multiply the decimal by Gary's gross pay.
0.062 x $1,047.30 = $64.88
So, the amount of Social Security tax deducted from Gary's gross pay is approximately $64.88.