Complete question:
Larren Buffett is concerned after receiving her weekly paycheck. She believes that her deductions for Social Security, Medicare, and federal income tax withholding (FIT) may be incorrect. Larren is paid a salary of $4,100 weekly. She is married, claims 3 deductions, and prior to this payroll check, has total earnings of $128,245. What are the correct deductions for Social Security, Medicare, and FIT?Assume a rate of 6.2% on $118,500 for Social Security and 1.45% for Medicare
Answer:
Social Security $604.19
Medicare $59.45
FIT $230.70
Explanation:
Total earning = $128,245
Weekly salary= $4,100
Social security tax = ($128,245 - $118,500) × 0.062 = $604.19
Medicare tax = $4,100 × 1.45 = $59.45
