Richard is paid a salary of $9,000.At the end of November,his cumulative gross earnings were $99,000.How much will his employer take out for the HI portion of social security for December?

Question

Quizplus · Accepted Answer

To find the HI (Hospital Insurance) portion of social security for December, we need to calculate 1.45% of Richard's gross earnings for December. 
Since we know his cumulative gross earnings in November were $99,000, we can subtract that from his total annual salary of $9,000 to find his gross earnings for December: 
$9,000 - $99,000 = -$90,000 (negative because he has not yet earned any money in December)

Therefore, the HI portion of social security for December would be $0, since 1.45% of a negative number is still $0. 
None of the answer choices reflect this possibility, but the closest option is C, which suggests $130.50 was taken out for HI in December.

Richard Is Paid a Salary of $9,000