Monthly gross pay is $20,666.67; Dawn reached the maximum taxable social security income in July; the amount of social security tax Dawn paid in February, July and November are $1,281.33, $849.42, and $0 respectively.
<h3>How do we calculate Social Security Tax?</h3>
Annual gross pay = $248,000
Monthly gross pay = $248,000 / 12 = $20,666.67
Maximum taxable social security income = $137,700
Social Security Tax Rate = 6.2%
Total Social Security Tax = Maximum social security income * Social Security Tax Rate = $137,700 * 6.2% = $8,537.40
Monthly Social Security Tax = Monthly gross earnings * Social Security Tax Rate = $20,667 * 6.2% = $1,281.33
Number of months Don reached the maximum taxable social security income = Maximum social security income / Monthly gross pay = $137,700 / $20,666.67 = 6.66 months
Since 6.66 months is greater than 6 but less than 7, this implies that the month Don reached the maximum taxable social security income is the 7th month which is July 2020.
Also, the 6.66 months imply that Dawn will fully pay his Total Social Security Tax in July.
Social security tax Dawn paid in February = Monthly Social Security Tax = $1,281.33
Social security tax Dawn paid in July = Total Social Security Tax - (Monthly Social Security Tax * 6) = $8,537.40 - ($1,281.33 * 6) = $849.42
Social security tax Dawn paid in November = $0
Note that $0 was paid in November because Dawn had already paid fully his Total Social Security Tax in July.
Learn more about Total Social Security Tax here: brainly.com/question/18268724.
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