The amount of tax deductions in one payment period and one year based on a Social Security tax rate of 6.2% and Medicare tax rate of 1.45% are;
13. Kim's weekly Medicare deductions is $7.888
Her annual Medicare deductions is $410.176
14. Jeffrey's annual Social Security tax deductions is $3,517.0616
15. Kareem's annual Medicare tax deductions is $606.97
16. A. Parker's annual Social Security tax deductions is $4,836
B. His annual Medicare tax deductions is $1,131
Which method can be used to calculate the tax deductions?
According to the accounting firm BGM website,in the year 2022, an employee is expected to pay a tax of 6.2% of the first $147,000 of wages, for Social Security, and a Medicare tax of 1.45% of the first $200,000
13. Kim's gross weekly salary is $544.
Given that 544 × 52 = 28,288 < 200,000, we have;
Kim's Medicare deduction for one pay period is 0.0145 × $544 = $7.888
Kim receives her payment weekly, therefore, multiplying by 52 gives;
Annual Medicare tax;
52 × $7.888 = $410.176
14. Jeffrey's semimonthly salary = $2,181.80
Jeffrey's tax deductions for Social Security for one pay period is therefore;
0.062 × $2,181.80 = $135.27160
The number of semimonthly payment periods in a year = 26
Jeffrey's annual Social Security tax deductions is therefore;
- 26 × $135.27160 = $3,517.0616
15. Kareem's gross biweekly salary is $1,610
Kareem's Medicare deductions per pay period is therefore;
0.0145 × $1,610 = $23.345
The number of biweekly pay periods in a year is 26
Kareem's total Medicare deductions for the year is therefore;
16. Parker's gross monthly salary is $6,500
A. Parker's Social Security deductions for one month is therefore;
0.062 × $6,500 = $403
The deductions in a year is therefore;
B. Parker's Medicare deductions for one month is given by the equation;
0.0145 × $6,500 = $94.25
Parker's Medicare deductions for one year is therefore;
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