Question

SECTION 2-4 PRACTICE

For problems 3–7 use the Social Security tax rate of 6.2 percent and Medicare

tax rate of 1.45 percent to determine each tax and the total deduction.

Gross Soc. Sec. Tax Medicare Tax

Total

Pay

Withheld

Withheld

Deduction

3.

a.

C!

b.

b.

а.

C.

4.

5.

$ 125.00

432.00

241.00

1,562.00

2,521.00

a.

b.

C.

a.

b.

c.

6.

7.

b.

C.

a.

US 4

Answer 1

Computation of each tax and the total deduction:

Gross Soc. Sec. Tax Medicare Total

Tax Deduction

a. $ 125.00 $7.75 $1.81 $9.56

b. 432.00 26.78 6.26 33.04

c. 241.00 14.94 3.49 18.43

d. 1,562.00 96.84 22.65 119.49

e. 2,521.00 156.30 36.55 192.85

Explanation:

a) Data and Calculations:

Social Security tax rate = 6.2%

Medicare tax rate = 1.45%

Computation of each tax and the total deduction:

Gross Soc. Sec. Tax Medicare Total Pay

Tax Deduction

a. $ 125.00 $7.75 $1.81 $9.56 $115.44

b. 432.00 26.78 6.26 33.04 398.96

c. 241.00 14.94 3.49 18.43 222.57

d. 1,562.00 96.84 22.65 119.49 1,442.51

e. 2,521.00 156.30 36.55 192.85 2,328.15

Total $4,881.00 302.61 70.76 373.37 4,507.63