Question

gary earned a gross pay of $1,047.30 last week. using the fact that social security tax is 6.2% of gross pay, determine the amount of social security tax deducted from gary’s gross pay.
a. $6.49
b. $8.38
c. $64.93
d. $83.78
please select the best answer from the choices provided
a
b
c

Explanation:

Step1: Convert tax rate to decimal

$6.2\% = 0.062$

Step2: Calculate tax amount

$\$1,047.30 \times 0.062 = \$64.9326 \approx \$64.93$

Answer:

c. $64.93$