Solve the problem. Use a FICA rate of 6.2%, a Medicare rate of 1.45%, and an SDI rate of 1%. Assume the person's
earnings will not exceed $31,800 for the year. Round to the nearest cent if needed.
-Donald Ruffano is paid a salary of $469 per week plus a commission of 2% on sales. During a recent week, he had sales of $11,040.34. Find his Social Security tax, Medicare tax, and SDI
Deduction for the week.

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Quizplus · Accepted Answer

Donald Ruffano's weekly earnings include a salary of $469 and a commission of 2% on sales of $11,040.34, which equals $220.81 (2% of $11,040.34). His total earnings for the week are $689.81 ($469 + $220.81). The Social Security tax is 6.2% of $689.81, which equals $42.77. The Medicare tax is 1.45% of $689.81, which equals $10.00. The SDI deduction is 1% of $689.81, which equals $6.90.

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