Kristy has bi-weekly gross earnings of $1,750. What were her total social security and Medicare tax with holdings for a whole year?
To calculate Kristy's total social security and Medicare tax withholdings for a whole year, we first need to determine the amount withheld from each paycheck.
Step 1: Determine the bi-weekly earnings
Kristy has bi-weekly gross earnings of $1,750.
Step 2: Calculate the social security tax withholding
The Social Security tax rate for individuals is currently 6.2%. To calculate the amount withheld for Social Security tax, we multiply the bi-weekly earnings by the Social Security tax rate:
Bi-weekly Social Security tax withholding = Bi-weekly earnings * Social Security tax rate
Bi-weekly Social Security tax withholding = $1,750 * 0.062
Step 3: Calculate the Medicare tax withholding
The Medicare tax rate is 1.45% for individuals. To calculate the amount withheld for Medicare tax, we multiply the bi-weekly earnings by the Medicare tax rate:
Bi-weekly Medicare tax withholding = Bi-weekly earnings * Medicare tax rate
Bi-weekly Medicare tax withholding = $1,750 * 0.0145
Step 4: Calculate the total tax withholdings for a whole year
Since there are 26 bi-weekly pay periods in a year, we can multiply the bi-weekly tax withholdings by 26 to find the total tax withholdings for a year:
Total Social Security tax withholdings = Bi-weekly Social Security tax withholding * 26
Total Medicare tax withholdings = Bi-weekly Medicare tax withholding * 26
Now we can calculate Kristy's total social security and Medicare tax withholdings for a whole year:
Total tax withholdings = Total Social Security tax withholdings + Total Medicare tax withholdings
You can plug in the numbers to calculate the final answer.