Mrs. Thomson had gross earnings of $1,345.90 last week. Compute the total amount she paid in Social Security and Medicare taxes using 6.2% and 1.45% respectively.

Question

Quizplus · Accepted Answer

To compute for the Social Security tax, we multiply the gross earnings by 6.2% (or 0.062):

Social Security tax = $1,345.90 x 0.062 = $83.45

To compute for the Medicare tax, we multiply the gross earnings by 1.45% (or 0.0145):

Medicare tax = $1,345.90 x 0.0145 = $19.52

To get the total amount paid in both taxes:

Total taxes = Social Security tax + Medicare tax = $83.45 + $19.52 = $102.97

Therefore, the answer is B.

Mrs Thomson Had Gross Earnings of $1,345