Question
Gary earned a gross pay of \( \$ 1,047.30 \) last week. Using the fact that Social Security tax is \( 6.2 \% \) of gross pay, determine the amount of Social Security tax deducted from Gary's gross pay. a. \( \$ 6.49 \) b. \( \$ 8.38 \) c. \( \$ 64.93 \) d. \( \$ 83.78 \) Please select the best answer from the choices provided
Ask by Norton Johnson. in the United States
Mar 11,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The Social Security tax deducted from Gary's gross pay is \$64.93.
Solution
Given Gary's gross pay of \( \$1,047.30 \) and a Social Security tax rate of \( 6.2\% \), we first convert the percentage into its decimal form:
\[
6.2\% = 0.062
\]
Next, we calculate the Social Security tax by multiplying the gross pay by \( 0.062 \):
\[
\$1,047.30 \times 0.062 = \$64.93
\]
Thus, the amount of Social Security tax deducted from Gary's gross pay is \( \$64.93 \).
The best answer is:
c. \( \$64.93 \)
Answered by UpStudy AI and reviewed by a Professional Tutor
Like
error msg
Explain 
Simplify this solution The Deep Dive
To find the amount of Social Security tax deducted from Gary's gross pay, you can calculate \( 6.2\% \) of \( 1,047.30 \). First, convert the percentage to a decimal by dividing by \( 100 \): \[ 6.2\% = 0.062 \] Now, calculate the tax: \[ \text{Social Security tax} = 1,047.30 \times 0.062 \] This yields approximately \( 64.93 \). So, the best answer from the given choices is: c. \( \$ 64.93 \)
