Unit Test Active Martha earned a gross pay of \( \$ 1,215.60 \) last week. Using the fact that Social Security tax is \( 6.2 \% \) of gross pay, determine the amount of Social security tax deducted from Martha's gross pay. a. \( \$ 7.54 \) b. \( \$ 65.37 \) c. \( \$ 75.37 \) d. \( \$ 75.40 \)

To find the Social Security tax deducted from Martha's gross pay, we need to calculate \(6.2\%\) of \( \$ 1,215.60 \). First, convert the percentage to a decimal: \(6.2\% = 0.062\). Next, multiply by the gross pay: \[ 0.062 \times 1,215.60 = 75.41 \] Thus, the amount of Social Security tax deducted is approximately \( \$ 75.40 \). The correct choice is d. \( \$ 75.40 \). Did you know that Social Security was established in 1935 as part of the New Deal to provide financial assistance to the elderly? It started as a modest program and has grown significantly over the decades, adapting to better serve the needs of those who have contributed to it throughout their working lives. When calculating deductions such as Social Security tax, it's easy to make rounding errors or miscalculate percentages. A common mistake is forgetting to convert the percentage to decimal form, which can lead to incorrect answers. Always double-check your calculations or use a calculator for accuracy, especially with financial figures!