14
QuizMultiple Choice

Social Security and Medicare

Question 14 • Financial Math - MA2007

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $56,010.

Answer
A
Social Security tax: $347.26, Medicare tax: $81.22
B
Social Security tax: $3,472.62, Medicare tax: $812.15
C
Social Security tax: $662.16, Medicare tax: $81.22
D
Social Security tax: $6,621.60, Medicare tax: $812.15

Explanation

Social Security tax is 6.2% of $56,010: $56,010 × 0.062 = $3,472.62. Medicare tax is 1.45%: $56,010 × 0.0145 = $812.145, which rounds to $812.15. The correct choice is Social Security tax: $3,472.62, Medicare tax: $812.15.

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