Sabrina Duncan had gross earnings for the pay period ending 10/15/16 of $5,785.Her total gross earnings as of 9/30/16 were $111,400.If Social Security taxes are 6.2% on a maximum earnings of $113,700 per year,Sabrina's Social Security withheld from her 10/15/16 paycheck would be:
A) $358.67
B) $142.60
C) $216.07
D) $198.88

Question

Quizplus · Accepted Answer

Sabrina's total earnings after the 10/15/16 paycheck would be $111,400 + $5,785 = $117,185. However, Social Security tax is only applied up to $113,700. Therefore, the taxable amount for this paycheck is $113,700 - $111,400 = $2,300. The Social Security tax withheld is 6.2% of $2,300, which equals $142.60.

Sabrina Duncan Had Gross Earnings for the Pay Period Ending