Question

John Doe earned $560.00 on his last paycheck. At 6.2% for social security, what was the deduction for social security tax?

A) $3.47
B) $6.20
C) $34.20
D) $34.72

Answer 1

The deduction for social security tax is $34.72.

Step-by-step explanation:

Social Security tax, also known as the Federal Insurance Contributions Act (FICA) tax, is a payroll tax imposed in the United States. It is levied to fund the Social Security program, which provides retirement, disability, and survivor benefits to eligible individuals. The Social Security tax is part of the larger FICA tax, which also includes the Medicare tax.

To calculate the deduction for social security tax, we need to multiply John Doe's earnings by the tax rate for social security. The social security tax rate is 6.2%, which can be written as a decimal as 0.062. So, the deduction for social security tax would be:

0.062 × $560.00 = $34.72

Therefore, the deduction for social security tax is $34.72.