Molly Flynn, an accountant at Coor Company, earned $102,800 from January to October. In November, Molly earned $8,500. Assume a tax rate of 6.2% for Social Security on a $110,100.00 base and a Medicare tax rate of 1.45%. How much is deducted from Molly's pay for Social Security and for Medicare for the November pay period?

Question

Amber Hess

Mathematics

17 October, 15:24

Molly Flynn, an accountant at Coor Company, earned $102,800 from January to October. In November, Molly earned $8,500. Assume a tax rate of 6.2% for Social Security on a $110,100.00 base and a Medicare tax rate of 1.45%. How much is deducted from Molly's pay for Social Security and for Medicare for the November pay period?

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Answers (1)

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Mira Pugh · Answer 1

Amount of Money deducted = $77.35

Step-by-step explanation:

In the question,

The amount of money earned by Molly Flynn, from January to October = $102,800

Amount of money earned by Molly in November = $8,500

Total money earned by Molly = $111,300

Rate of tax for Social Security = 6.2 %

Rate of tax for Medicare tax = 1.45 %

So,

Total tax paid by Molly = 6.2 + 1.45 = 7.65 %

Base amount = $110,100

So,

Total tax to be paid by Molly = 7.65 % of Base Amount

Total tax to be paid by Molly = $8,422.65

Therefore, Amount of Money deducted from November's Pay Period = $8,500 - $8,422.65 = $77.35