Question

Garry earned a gross pay of $1047.30 last week. Using the fact that social security tax is 6.2% of gross pay determine the amount of social security tx deductions from Gary's gross pay

Answer 1

Okay. Social Security tax is 6.2% of the money made. To find the amount of money paid to Social Security, we need to multiply the gross pay by the percentage, in this case, 6.2% (0.062). 1,047.3 * 0.062 = 64.9326 or 64.93 when rounded to the nearest hundredth. $64.93 will be deducted from Gary's gross pay to pay Social Security tax.