Problem

FCA with no ceiling

In the paystub below, fill in the missing amounts, given the FICA tax rates (round to the nearest cent, if necessary):
\begin{tabular}{|cccccc|}
\hline \begin{tabular}{c}
Weekly Salary \\
Amount
\end{tabular} & \begin{tabular}{c}
Social Security \\
Tax Rate
\end{tabular} & \begin{tabular}{c}
Social Security \\
Tax Deduction
\end{tabular} & \begin{tabular}{c}
Medicare Tax \\
Rate
\end{tabular} & \begin{tabular}{c}
Medicare Tax \\
Deduction
\end{tabular} & \begin{tabular}{c}
Total Deduction \\
For FICA Taxes
\end{tabular} \\
$\$ 992$ & $6.2 \%$ & $\$ \square$ & $1.45 \%$ & $\$ \square$ & $\$ \square$ \\
\hline
\end{tabular}

Answer

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Answer

\(\boxed{\text{The Social Security Tax Deduction is \$61.50, the Medicare Tax Deduction is \$14.38, and the Total Deduction for FICA Taxes is \$75.88.}}\)

Steps

Step 1 :Given the weekly salary amount of $992, the Social Security tax rate of 6.2%, and the Medicare tax rate of 1.45%, we are asked to calculate the Social Security Tax Deduction, Medicare Tax Deduction, and Total Deduction for FICA Taxes.

Step 2 :To calculate the Social Security Tax Deduction, we multiply the weekly salary amount by the Social Security tax rate. This gives us \(992 \times 0.062 = \$61.50\).

Step 3 :To calculate the Medicare Tax Deduction, we multiply the weekly salary amount by the Medicare tax rate. This gives us \(992 \times 0.0145 = \$14.38\).

Step 4 :The Total Deduction for FICA Taxes is the sum of the Social Security Tax Deduction and the Medicare Tax Deduction. This gives us \(61.50 + 14.38 = \$75.88\).

Step 5 :\(\boxed{\text{The Social Security Tax Deduction is \$61.50, the Medicare Tax Deduction is \$14.38, and the Total Deduction for FICA Taxes is \$75.88.}}\)

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