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In 1990, Dawn gross pay was $48,000.
A. What was her gross monthly pay?

B. In What month did Dawn hit the maximum taxable Social Security Income?

C. How much Social Security tax did Dawn pay in February of 1978?

D. How much Social Security tax did Jerry pay in May of 1978?

D. How much Social Security tax did Jerry pay in November of 1978?

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Sagot :

anthougo

A. Dawn's gross monthly pay is $4,000 ($48,000/12).

B. The month that Dawn hit her maximum taxable Social Security Income is May (5 months from January to May).

C. In February, 1978, Dawn paid $260 in Social Security Tax.

D. In May, 1978, Dawn paid $110.50 in Social Security Tax, which represented the balance.

E. In November, 1978, Dawn paid $0 in Social Security Tax because by May she had completely paid the maximum Social Security Tax of $1,150.50.

Data and Calculations:

Gross earnings in 1990 = $48,000

Maximum taxable income in 1990 = $17,700

Social Security Tax Rate = 6.5%

Gross monthly pay = $4,000 ($48,000/12)

Monthly Social Security Tax = $260 ($4,000 x 6.5%)

Total Social Security Tax = $1,150.50 ($17,700 x 6.5%)

In 5 months, Dawn would have paid a total of $1,150.50 ($260 x 4 + $110.50) in Social Security Tax.

Thus, the total Social Security Tax paid by Dawn in that year was $1,150.50.

Learn more about Social Security Tax here: https://brainly.com/question/9741758

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