Question

find the social security tax and the medicare tax paid by william petra for the current pay period. assume all williams earnings are subject to both taxes and that the fica rate is 6.2% and the medicare rate is 1.45%.

employee	earnings current pay period	fica @ 6.2%	medicare @ 1.45%

what is the fica tax deducted from william’s current gross earnings?
$ 31.98 (round to the nearest cent.)

the medicare deduction from william’s current gross earnings is $\square
(round to the nearest cent.)

Explanation:

Step1: Identify the earnings and rate

Earnings = $515.76, Medicare rate = 1.45% = 0.0145

Step2: Calculate Medicare tax

Medicare tax = Earnings × Rate = $515.76 × 0.0145
$515.76 × 0.0145 = 7.47852

Step3: Round to nearest cent

Rounded to nearest cent, 7.47852 ≈ 7.48

Answer:

$7.48