Respuesta :
Dawn's monthly gross pay was $20,666.67; the maximum taxable social security income was reached in July; $1,281.33, $849.42, and $0 were paid as the social security tax in February, July, and November respectively.
How is Social Security Tax calculated?
This question can be solved as follows:
Annual gross pay = $248,000
Monthly gross pay = $248,000 / 12 = $20,666.67
Maximum taxable social security income = $137,700
Social Security Tax Rate = 6.2%
Total Social Security Tax = Maximum social security income * Social Security Tax Rate = $137,700 * 6.2% = $8,537.40
Monthly Social Security Tax = Monthly gross earnings * Social Security Tax Rate = $20,667 * 6.2% = $1,281.33
Number of months the maximum taxable social security income was reached = Maximum social security income / Monthly gross pay = $137,700 / $20,666.67 = 6.66 months
The implication of 6.66 months which is greater than 6 but less than 7 is that the maximum taxable social security income was reached in the 7th month which is July.
Also, the 6.66 months imply that Dawn will fully pay his Total Social Security Tax in July.
February social security tax = Monthly Social Security Tax = $1,281.33
July social security tax = Total social security tax - (Monthly Social Security Tax * 6) = $8,537.40 - ($1,281.33 * 6) = $849.42
November social security tax = $0
It should be noted that since Dawn had already paid fully his Total Social Security Tax in July, his payment in November has to be $0.
Learn more about Total Social Security Tax here: https://brainly.com/question/15058015.
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