What will be the total deduction for social security and Medicare taxes on Rony's next semimonthly paycheck of $3,960.00, if she has already earned $42,560.00 this year? (Social security tax is 6.2% of gross wages up to $117,00. Medicare tax is 1.45% of all gross wages.)

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Quizplus · Accepted Answer

Social security tax = 6.2% of $3,960 = $245.52 (since $42,560 + $3,960 = $46,520, which is less than $117,000, all of Rony's wages are subject to social security tax). Medicare tax = 1.45% of $3,960 = $57.42. Total deduction = $245.52 (social security) + $57.42 (Medicare) = $302.94.

What Will Be the Total Deduction for Social Security and Medicare