Question

calculate the social security and medicare tax that would be applied to an annual salary of $35,400.
a. social security tax: $2,194.80, medicare tax: $513.30
b. social security tax: $21,948.00, medicare tax: $5,133.00
c. social security tax: $6,621.60, medicare tax: $513.30
d. social security tax: $66,216.00, medicare tax: $5,133.00
please select the best answer from the choices provided
a b c d

Explanation:

Step1: Recall tax rates

Social Security tax rate is 6.2% (for 2024, assuming this rate), Medicare tax rate is 1.45%.

Step2: Calculate Social Security tax

Annual salary = $35,400. Social Security tax = $35,400 × 0.062 = $35,400 × 62/1000 = $35,400 × 0.062 = $2,194.80.

Step3: Calculate Medicare tax

Medicare tax = $35,400 × 0.0145 = $35,400 × 145/10000 = $513.30.

Answer:

a. Social Security tax: $2,194.80, Medicare tax: $513.30