Answer:
The hourly wage of the Farrell is $24.06 .
Option (A) is correct .
Total deduction for FICA tax is $141.22 .
Option (C) is correct .
Step-by-step explanation:
First part
As given
Farrell earned $754.16 in net pay for working 40 hours.
He paid $134.76 in federal and state income taxes,and $73.64 in FICA taxes.
Total gross pay = Net pay + Federal tax + State income taxes.
Putting all the values in the above
Total gross pay = $754.16 + $134.76 + $73.64
= $ 962.56
[tex]Hourly\ wage =\frac{Total\ gross\ pay}{Number\ of\ hours}[/tex]
[tex]Hourly\ wage =\frac{962.56}{40}[/tex]
Hourly wage = 24.06 (Approx)
The hourly wage of the Farrell is $24.06 .
Option (A) is correct .
Second part
Mira's gross pay is $1846.
The social security tax is 6.2% of gross pay.
6.2% is written in the decimal form .
[tex]= \frac{6.2}{100}[/tex]
= 0.062
Social security tax = 0.062 × Gross pay
= 0.062 × $1846
= $ 114.452
The medicare tax is 1.45% of gross pay .
1.45% is written in the decimal form .
[tex]= \frac{1.45}{100}[/tex]
= 0.0145
Medicare tax = 0.0145× Gross pay
= 0.0145 × $1846
= $ 26.767
Thus
Total deducted for FICA tax = Social security tax + Medicare tax
Putting the values in the above
Total deducted for FICA tax = $114.452+ $26.767
= $ 141.22 (Approx)
Therefore total deduction for FICA tax is $141.22 .
Option (C) is correct .
