George's Gameroom had two employees with the following earnings information:

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Use the table above and calculate how much of Hillary's December 15 paycheck is still subject to Social Security tax given that the tax is levied on the first $122,700 of annual wages and the Medicare tax rate is 1.45% on all earnings.

Question

George's Gameroom had two employees with the following earnings information:

- 
Use the table above and calculate how much of Hillary's December 15 paycheck is still subject to Social Security tax given that the tax is levied on the first $122,700 of annual wages and the Medicare tax rate is 1.45% on all earnings.

Quizplus · Accepted Answer

The problem states that Social Security tax is levied on the first $122,700 of annual wages. Assuming Hillary has not yet reached this limit before her December 15 paycheck, the entire paycheck amount of $4,400 would still be subject to Social Security tax.

George's Gameroom Had Two Employees with the Following Earnings Information