10
QuizMultiple Choice

Social Security and Medicare

Question 10 • FL-2102373-Personal Finance and Money Management Honors

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $35,400.

Answer
A
Social Security tax: $2,194.80, Medicare tax: $513.30
B
Social Security tax: $21,948.00, Medicare tax: $5,133.00
C
Social Security tax: $6,621.60, Medicare tax: $513.30
D
Social Security tax: $66,216.00, Medicare tax: $5,133.00

Explanation

Social Security tax is 6.2% of $35,400: $35,400 × 0.062 = $2,194.80. Medicare tax is 1.45%: $35,400 × 0.0145 = $513.30, so the correct choice is the one listing $2,194.80 in Social Security tax and $513.30 in Medicare tax.

AI-written and checked against the verified answer.

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