Problema Solution
Dan Dietrich is an executive with Coronado Distributors. His gross earnings are $9,850 per month. Assume the government withholds 6.2% for Social Security and 1.45% for Medicare. What are the combined withholdings for Social Security and Medicare for Dan’s January paycheck?
Answer provided by our tutors
we assume the withholdings are based on gross pay, so that 1.45% and 6.2% are applied to the same amount
0.0145 * 9850 + 0.062 * 9850 = 753.525
$753.53 represents the combined withholdings