Samantha Rodriguez had gross earnings for the pay period ending 10/15/13 of $4,785. Her total gross earnings as of 9/30/13 were $104,500. Social Security taxes are 6.2% on a maximum earnings of $106,800 per year. The Social Security tax due by her employer from her 10/15/13 paychecks is:

Question

Quizplus · Accepted Answer

Samantha's total gross earnings after the 10/15/13 pay period would be $104,500 + $4,785 = $109,285. However, Social Security tax is only applied up to $106,800. Therefore, the taxable amount for this pay period is $106,800 - $104,500 = $2,300. The Social Security tax is 6.2% of $2,300, which is $142.60.

Samantha Rodriguez Had Gross Earnings for the Pay Period Ending