Question
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
to this payroll check has total earnings of
rate of
Note: Round your answers to the nearest cent.
Federal Income Tax withholding (FIT) may be incorrect. Larren is paid a salary of
to this payroll check has total earnings of
rate of
Note: Round your answers to the nearest cent.
Ask by Fuentes Stewart. in the United States
Mar 20,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
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
Solution
To calculate the correct deductions for Social Security, Medicare, and Federal Income Tax withholding (FIT) for Larren Buffett, we will follow these steps:
-
Calculate Social Security Deduction:
- The Social Security tax rate is
on earnings up to . - Since Larren’s total earnings prior to this paycheck are
, we need to determine how much of her salary is subject to Social Security tax.
- The Social Security tax rate is
-
Calculate Medicare Deduction:
- The Medicare tax rate is
on all earnings. - We will apply this rate to her weekly salary of
.
- The Medicare tax rate is
-
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:
- Total earnings limit for Social Security:
- Remaining amount subject to Social Security tax:
Step 2: Calculate Medicare Deduction
- Weekly salary:
- Medicare deduction:
Now, let’s perform these calculations.
Calculate the value by following steps:
Calculate the value by following steps:
- step0: Calculate:
- step1: Multiply the numbers:
Calculate or simplify the expression.
Calculate the value by following steps: - step0: Calculate:
- step1: Subtract the numbers:
Step 1: Calculate Remaining Amount for Social Security
The remaining amount subject to Social Security tax is:
Step 2: Calculate Medicare Deduction
The Medicare deduction is:
Step 3: Calculate Social Security Deduction
Now, we calculate the Social Security deduction based on the remaining amount:
Summary of Deductions
- Social Security Deduction:
- Medicare Deduction:
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:
- Medicare:
Would you like to proceed with an estimate for FIT, or do you have the specific rate from Table 91?
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution The Deep Dive
To calculate Larren’s deductions accurately, we start with her Social Security deduction. Since her total earnings are
Next, we calculate her Medicare deduction:
For Federal Income Tax (FIT), we need to refer to the appropriate tax table based on her filing status and income. Assuming a rate and brackets similar to current tax laws, let’s estimate a FIT deduction of approximately
So her total deductions would be:
- Social Security:
- Medicare:
- FIT:
Total deductions:
Social Security Deduction: $267.84
Medicare Deduction: $62.64
Federal Income Tax (FIT): $596.00
Total Deductions: $926.48
Medicare Deduction: $62.64
Federal Income Tax (FIT): $596.00
Total Deductions: $926.48
