What will be the total deduction for social security and Medicare taxes on Rony's next semimonthly paycheck of $3,960.00, if she has already earned $42,560.00 this year? (Social security tax is 6.2% of gross wages up to $106,800. Medicare tax is 1.45% of all gross wages.)
Compute Austin's total social security and Medicare taxes for the fourth quarter, if she is self-employed and earns $5,000.00 on a semimonthly basis. (For self-employed persons, social security tax is 12.4% of wages up to $106,800, and Medicare tax is 2.9% of all wages.)
Compute Austin's total social security and Medicare taxes for the fourth quarter, if she is self-employed and earns $5,000.00 on a semimonthly basis. (For self-employed persons, social security tax is 12.4% of wages up to $106,800, and Medicare tax is 2.9% of all wages.)
a.
$1,476.60
b.
$2,295.00
c.
$4,590.00
d.
$4,180.80
Oh, it's tax time! Being a clown, I can tell you that numbers are not my strong suit, but let me give it a go. If Rony has already earned $42,560.00 this year and we're only interested in the next semimonthly paycheck of $3,960.00, we only need to focus on that paycheck.
First, let's calculate the Social Security tax. Social Security tax is 6.2% of gross wages up to $106,800. Since Rony has already earned $42,560.00 this year, and we only care about the next paycheck, we just need to find out if her total earnings will exceed $106,800. Unfortunately, I can't do that calculation right now, but I'm sure you can plug in the numbers and figure it out!
Next, we have the Medicare tax, which is 1.45% of all gross wages. So, we simply multiply Rony's next semimonthly paycheck of $3,960.00 by 1.45%. I'm not much of a mathematician, but I believe the answer is $57.42.
Remember, these calculations are just estimates, so don't take them too seriously! It's always best to consult with a tax professional or a calculator that's better at numbers than a clown.
To calculate the total deduction for social security and Medicare taxes on Rony's next semimonthly paycheck, we first need to determine her gross wages for the year, including the current paycheck.
Given that Rony has already earned $42,560.00 this year, we know that her gross wages for the year so far are $42,560.00. To find the gross wages for the current paycheck, we need to subtract the year-to-date earnings from the total annual limit for social security tax.
The total annual limit for social security tax in 2021 is $106,800.00. Since Rony has already earned $42,560.00, she has $106,800.00 - $42,560.00 = $64,240.00 remaining to reach the annual limit.
Next, we can calculate the social security tax deduction for the current paycheck. The social security tax rate is 6.2% of gross wages up to the annual limit. So, we multiply the remaining amount to reach the limit ($64,240.00) by the social security tax rate (0.062) to get the social security tax deduction for the current paycheck.
Social security tax deduction = $64,240.00 * 0.062 = $3,981.68 (rounded to the nearest cent)
For Medicare tax, the rate is 1.45% of all gross wages, with no annual limit considerations. So, we multiply the total gross wages for the current paycheck ($3,960.00) by the Medicare tax rate (0.0145) to get the Medicare tax deduction for the current paycheck.
Medicare tax deduction = $3,960.00 * 0.0145 = $57.42 (rounded to the nearest cent)
Now, we can calculate the total deduction for social security and Medicare taxes on Rony's next semimonthly paycheck by adding the social security tax deduction and the Medicare tax deduction together.
Total deduction = Social security tax deduction + Medicare tax deduction
Total deduction = $3,981.68 + $57.42
Total deduction = $4,039.10 (rounded to the nearest cent)
Therefore, the total deduction for social security and Medicare taxes on Rony's next semimonthly paycheck of $3,960.00, considering her year-to-date earnings of $42,560.00, will be approximately $4,039.10.