Asked by Jessica Romero on May 21, 2024
Verified
Marcus earned $54,000 last year when the Social Security tax was 6.2% of income up to $94,200.His Medicare tax was 1.45%.How much did he pay in Social Security and Medicare taxes last year?
Social Security Tax
A mandatory government tax taken from workers' earnings to fund the Social Security program, which provides retirement, disability, and survivor benefits.
Medicare Tax
A federal tax deducted from an individual's wages to fund the Medicare program, which provides healthcare benefits to eligible elderly and disabled individuals.
- Learn the methodology for computing Social Security and Medicare contributions from yearly earnings.
- Understand the role and calculation of withholdings and deductions from an employee's paycheck.
Verified Answer
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Learning Objectives
- Learn the methodology for computing Social Security and Medicare contributions from yearly earnings.
- Understand the role and calculation of withholdings and deductions from an employee's paycheck.