Question

Pat maninen earns a gross salary of $3,000 each week. assume a rate of 6.2% on $118,500 for social security and 1.45% for medicare.
a. what are pat's first week's deductions for social security and medicare? (round your answers to the nearest cent.) deductions social security $ 186 medicare $ 43.5

Answer 1

Answer:

Social Security = $186.00
Medicare = $43.50

Explanation:

Since the given rate for Social security is 6.2%, the first week deduction is 6.2% of gross weekly salary, which is $3,000. Hence, the first week deduction for Social Security is given by

Social Security Deduction = 6.2% of $3,000
                                          = 0.062 × 3,000 (Change 6.2% to decimal)
                                          = $186.00

Similarly, since 1.43% is the given rate for medicare, the first week deduction is 1.43% of the gross weekly salary, which is $3,000. Thus, the first week deduction for medicare is given by

Medicare Deduction = 1.43% of $3,000 
                                 = 0.0143 × 3,000
                                 = $43.50