Question

In 1990, Dawn gross pay was $48,000.

Answer 1

A. Dawn's gross monthly pay is $4,000 ($48,000/12).

B. The month that Dawn hit her maximum taxable Social Security Income is May (5 months from January to May).

C. In February, 1978, Dawn paid $260 in Social Security Tax.

D. In May, 1978, Dawn paid $110.50 in Social Security Tax, which represented the balance.

E. In November, 1978, Dawn paid $0 in Social Security Tax because by May she had completely paid the maximum Social Security Tax of $1,150.50.

Data and Calculations:

Gross earnings in 1990 = $48,000

Maximum taxable income in 1990 = $17,700

Social Security Tax Rate = 6.5%

Gross monthly pay = $4,000 ($48,000/12)

Monthly Social Security Tax = $260 ($4,000 x 6.5%)

Total Social Security Tax = $1,150.50 ($17,700 x 6.5%)

In 5 months, Dawn would have paid a total of $1,150.50 ($260 x 4 + $110.50) in Social Security Tax.

Thus, the total Social Security Tax paid by Dawn in that year was $1,150.50.

Learn more about Social Security Tax here: brainly.com/question/9741758