Question

Calculate the Social Security for the following employee: Round to the nearest penny and do not include a $ sign.
Employee Name: Susan Patchett
Status and Allowance: M-3
Payroll: Bi-weekly
Cumulative Earnings: $112,300
Gross Earning this period: $6,100

Answer 1

assume a tax rate of 6.2% on $118,800 for Social Security and 1.45% for Medicare,

as we know an employee must contribute 6.2% of this income as social security .

Social Security tax is calculated as your gross earnings times 6.2%.

so we have gross earning of the employee= 1600

6.2% of 1600 is

6.2 * 1600/100

= 99.2 $

so social security for that period is   99.2 $.

this is amount for this gross earning, but if you want on whole amount then just add the amount with cumilitive and then calculate 6.2% of that.

6.2% of ( $112,300 + $6,100 )

= 0.062 * 118400

totals SS on total earning= 7340.8