Find the Social Security tax (6.2%), Medicare tax (1.45%), and state disability insurance deduction (1%) for the employee.
Assume the employee is under the FICA and SDI maximums at the end of the current pay period and assume that
time-and-a-half is paid for any overtime in a 40-hour week. Round to the nearest cent if needed.
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Question

Quizplus · Accepted Answer

To calculate the Social Security tax, we multiply the employee's gross pay by 6.2%.

Social Security tax = $800 x 6.2% = $49.60

To calculate the Medicare tax, we multiply the employee's gross pay by 1.45%.

Medicare tax = $800 x 1.45% = $11.60

To calculate the state disability insurance deduction, we multiply the employee's gross pay by 1%.

State disability insurance deduction = $800 x 1% = $8.00

Adding all three deductions together, we get:

$49.60 + $11.60 + $8.00 = $69.20

Rounding to the nearest cent, we get:

Social Security tax = $49.60 
Medicare tax = $11.60 
State disability insurance deduction = $8.00

Therefore, the best choice is B. To find the Social Security tax, we multiply the gross pay by 6.2%, or 0.062. 
To find the Medicare tax, we multiply the gross pay by 1.45%, or 0.0145. 
To find the state disability insurance deduction, we multiply the gross pay by 1%, or 0.01. 
The calculations are as follows: 
- Social Security tax: $600 × 0.062 = $37.20
- Medicare tax: $600 × 0.0145 = $8.70 
- State disability insurance deduction: $600 × 0.01 = $6.00 
We round each of these numbers to the nearest cent, giving us: 
- Social Security tax: $37.20 ≈ $37.21 
- Medicare tax: $8.70 ≈ $8.47 
- State disability insurance deduction: $6.00 ≈ $5.86 
Therefore, the total deductions are approximately $23.41.

Find the Social Security Tax (6