Answer alongwith Step-by-step explanation:
<u>1. Social Security</u>
Here Gross income = $62,300
Step 1 Find semiannual income
Semimonthly gross income = $62,300 / 24 = $2595.83
Step 2 Find the social security liability using social security rate and annual income
Social security rate is 6.2%
Social Security Liability = 6.2% x $2595.83 = $160.94 semimonthly payments
Step 3 Find the social security liability using social security rate and annual income
Deduction amount for Social security on monthly basis = $160.94 *2 =
$321.88 per month
<u>2. Medicare</u>
Here Gross income = $62,300
Step 1 Find semiannual income
Semiannual Gross income = $62,300 / 24 = $2595.83
Step 2 Find the social security liability using Medicare rate and annual income
Medicare rate is 1.45%
Medicare Liability = 1.45% x $2595.83 = $37.64 semimonthly payments
Step 3 Find the social security liability using Medicare rate and annual income
Deduction amount for Social security on monthly basis = $160.94 *2
= $75.28 per month
