Question

Adam Zetts is an aerospace engineer earning $78,000 a year, paid on a semimonthly basis. How much is deducted per pay period for Social Security? How much for Medicare?

A. Social Security: $292.50, Medicare: $68.25
B. Social Security: $117.00, Medicare: $36.75
C. Social Security: $146.25, Medicare: $34.13
D. Social Security: $73.13, Medicare: $17.06

Answer 1

The amount deducted per pay period for Social Security and Medicare can be calculated based on the annual income and the tax rates. The deductions for Social Security and Medicare in this case are $292.50 and $68.25, respectively.

Step-by-step explanation:

The amount deducted per pay period for Social Security and Medicare can be calculated based on the annual income and the rates for each tax. In this case, we can use the given information that the Social Security deduction is 6.2% of the gross annual income and Medicare is 1.45% of the gross annual income.

For Social Security, we can calculate the deduction by multiplying the annual income by the Social Security rate (6.2% = 0.062). So, the deduction for Social Security would be $78000 x 0.062 = $

For Medicare, we can calculate the deduction by multiplying the annual income by the Medicare rate (1.45% = 0.0145). So, the deduction for Medicare would be $78000 x 0.0145 = $

Therefore, the correct answer is

A. Social Security: $292.50, Medicare: $68.25