Question

the social security deduction is 6.2% of a person’s salary up to a limit of $102,000. the medicare deduction is 1.45% of a person’s salary with no limit. deion earned $350 this pay period and has earned $21,000 to date this year. find the total amount of his social security and medicare deduction for this pay period. $21.70 $27.77 $25.73 $26.78

Explanation:

Step1: Calculate Social Security deduction

Social Security applies to salary up to $102,000. Since $21,000 < $102,000, use full salary:
$21,000 × 6.2% = $21,000 × 0.062 = $1,302
But wait—wait, no: the pay period salary is $350 (not annual). Correct:
$350 × 6.2% = $350 × 0.062 = $21.70

Step2: Calculate Medicare deduction

Medicare has no limit:
$350 × 1.45% = $350 × 0.0145 = $5.075

Step3: Sum total deductions

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Answer:

$26.78