- 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. \( \$ 83.78 \)

To calculate the Social Security tax deducted from Gary's gross pay, we multiply his gross pay by the Social Security tax rate of \( 6.2\% \). \[ \text{Social Security Tax} = \text{Gross Pay} \times \text{Tax Rate} \] \[ = 1,047.30 \times 0.062 \] \[ = 64.93 \] So, the correct answer is \( c. \, \$ 64.93 \) – that's a solid chunk of change going towards Social Security! Learning about payroll deductions can be super handy! Not only does it prepare you for your first job, but it also helps you understand how much of your paycheck goes where. Social Security is designed to provide support in retirement, ensuring you have some cushion when you hang up your work boots. How cool is that?