Larren Buffett is concerned after receiving her weekly paycheck. She believes that her deductions for Social Security, Medicare, and Federal Income Tax withholding (FIT) may be incorrect. Larren is paid a salary of $$ \$ 4,320 $$ weekly: She is married, filing jointly and prior to this payroll check has total earnings of $$ \$ 140,440 $$. What are the correct deductions for Social Security, Medicare, and FIT? Assume a rate of $$ 6.2 \% $$ on $$ \$ 142,800 $$ for Social Security and $$ 1.45 \% $$ for Medicare. (Use Table 91 ). Note: Round your answers to the nearest cent.

Question

UpStudy AI · Accepted Answer

To calculate the correct deductions for Social Security, Medicare, and Federal Income Tax withholding (FIT) for Larren Buffett, we will follow these steps:

1. **Calculate Social Security Deduction**:
   - The Social Security tax rate is $$ 6.2\% $$ on earnings up to $$ \$ 142,800 $$.
   - Since Larren's total earnings prior to this paycheck are $$ \$ 140,440 $$, we need to determine how much of her salary is subject to Social Security tax.

2. **Calculate Medicare Deduction**:
   - The Medicare tax rate is $$ 1.45\% $$ on all earnings.
   - We will apply this rate to her weekly salary of $$ \$ 4,320 $$.

3. **Calculate Federal Income Tax (FIT)**:
   - For this calculation, we will need to refer to the tax table (Table 91) to determine the FIT based on her filing status and income. However, since we don't have the specific table, we will assume a general approach for the calculation.

Let's start with the calculations for Social Security and Medicare deductions.

### Step 1: Calculate Social Security Deduction
- Larren's total earnings before this paycheck: $$ \$ 140,440 $$
- Total earnings limit for Social Security: $$ \$ 142,800 $$
- Remaining amount subject to Social Security tax: 
  $$
  \text{Remaining} = 142800 - 140440
  $$

### Step 2: Calculate Medicare Deduction
- Weekly salary: $$ \$ 4,320 $$
- Medicare deduction:
  $$
  \text{Medicare Deduction} = 4320 \times 0.0145
  $$

Now, let's perform these calculations.
Calculate the value by following steps:
- step0: Calculate:
  $$4320\times 0.0145$$
- step1: Multiply the numbers:
  $$62.64$$
Calculate or simplify the expression $$ 142800 - 140440 $$.
Calculate the value by following steps:
- step0: Calculate:
  $$142800-140440$$
- step1: Subtract the numbers:
  $$2360$$
### Step 1: Calculate Remaining Amount for Social Security
The remaining amount subject to Social Security tax is:
$$
\text{Remaining} = 142800 - 140440 = 2360
$$

### Step 2: Calculate Medicare Deduction
The Medicare deduction is:
$$
\text{Medicare Deduction} = 4320 \times 0.0145 = 62.64
$$

### Step 3: Calculate Social Security Deduction
Now, we calculate the Social Security deduction based on the remaining amount:
$$
\text{Social Security Deduction} = 2360 \times 0.062 = 146.32
$$

### Summary of Deductions
- **Social Security Deduction**: $$ 146.32 $$
- **Medicare Deduction**: $$ 62.64 $$

### Federal Income Tax (FIT)
To calculate the Federal Income Tax (FIT), we would typically refer to the tax table. However, since we don't have access to Table 91, we cannot provide an exact amount for FIT without that information.

If you have the specific FIT rate or amount from Table 91, please provide it, and I can help you calculate the total deductions including FIT.

For now, the deductions we have calculated are:
- **Social Security**: $$ 146.32 $$
- **Medicare**: $$ 62.64 $$

Would you like to proceed with an estimate for FIT, or do you have the specific rate from Table 91?
The correct deductions are: - **Social Security**: \$146.32 - **Medicare**: \$62.64 - **Federal Income Tax (FIT)**: Cannot be determined without Table 91. Total deductions: \$146.32 (Social Security) + \$62.64 (Medicare) + FIT = \$208.96 + FIT

Solución de inteligencia artificial de Upstudy

Responder

Solución

The Deep Dive

preguntas relacionadas

Latest Economics Questions