Question

The social secruity tax rate is 6.2% and is paid on the first $97,500 of income. the medicare tax rate is 1.45% and applies to al earnings. john bob makes $350,000 each year as a product designer. select the correct calculation of his annual social secruity deduction.
A. 350,000 x 6.2%
B. 97,500 x 6.2%
C. (350,000-97,500)x 6.2%
D. 97,500 x 1.45%

Answer 1

C. becasue its aying that you make 350,000 a year - the income