Question

business expenses
small business expenses
in this spreadsheet, expenses are listed in column a and their amounts are in column b.
expense type\tamount
rent\t$2,800.00
liability insurance\t$350.00
property insurance\t$250.00
books and supplies\t$1,600.00
wages\t$4,200.00
utilities\t$500.00
health insurance\t$650.00
workers compensation insurance\t$300.00
advertising\t$550.00
office supplies\t$150.00
social security and medicare taxes (formula)
total fixed expenses (formula)
total variable expenses (formula)
total monthly expenses (formula)
which formula would you use in cell b12 to calculate the social security and medicare taxes (7.65%) on the monthly wages listed in cell b6?
= b6/0.0765
= b6/0.765
= b6 * 0.765
= b6 * 0.0765

Explanation:

Step1: Recall tax - calculation formula

To find a percentage of a number, we multiply the number by the percentage in decimal form.

Step2: Convert percentage to decimal

The Social Security and Medicare tax rate is 7.65%, which in decimal form is 0.0765.

Step3: Determine the formula

To calculate 7.65% of the monthly wages in cell B6, we multiply the value in B6 by 0.0765. So the formula is =B6*0.0765.

Answer:

=B6*0.0765