What will be the total deduction for social security and Medicare taxes on Lily's next monthly paycheck of $3,260 if she has already earned $29,340 this year? Social security tax is 6.2% of wages up to $106,800. Medicare tax is 1.45% of all wages.

1 answer

clearly, the deduction will be

.062*3260 + .0145*3260

It will be the same for all her paychecks, since her annual earnings will fall well short of the SS cutoff point.