Use the 2021 tax rates to find Social Security and Medicare deductions for the following problems. Tax rate for Social Security: 0.062 Tax rate for Medicare: 0.0145 "Bill earned $3,592 on his last biweekly check, and had year-to-date earnings of $107,841."

Use the 2021 tax rates to find Social Security and Medicare deductions for the following problems. Tax rate for Social Security: 0.062 Tax rate for Medicare: 0.0145 "Bill earned $3,592 on his last biweekly check, and had year-to-date earnings of $107,841."

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Use the 2021 tax rates to find Social Security and Medicare deductions for the following problems.

Tax rate for Social Security: 0.062

Tax rate for Medicare: 0.0145

"Bill earned $3,592 on his last biweekly check, and had year-to-date earnings of $107,841."

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Step 1: Deductions:

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Step 2: Computation of the Social Security deduction:

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Step 3: Computation of the Medicare deduction:

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Step 4: Conclusion:

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