Question

Maureen's gross pay is $1,150. How much of her gross pay will be deducted forFICA taxes? (The social security tax rate is 6.2% and the medicare tax rate is 1.45%)Round to the hundredths place, if the answer doesn't have a hundredths placeinclude a zero so the answer does have a hundredths place. Use a word for theunits not a symbol Your Answer:Units:

Answer 1

Given:

Gross pay is $1150

The social security tax rate is 6.2% and the medicare tax rate is 1.45%

$\begin{gathered} \text{Amount deducted for social security tax=1150}\times\frac{6.2}{100} \\ =\text{ \ 71.30} \end{gathered}$$\begin{gathered} \text{Amount deducted for medicare tax=1150}\times\frac{1.45}{100} \\ =\text{ \ }16.68 \end{gathered}$$\begin{gathered} \text{Gross pay deducted for FICA taxes=71.30+16.68} \\ =\text{ \ }87.98 \end{gathered}$

Gross pay dedected is 87.98 dollar.