What are the correct deductions for Social Security, Medicare, and FIT?
Chapter4: Gross Income: Concepts And Inclusions
Section: Chapter Questions
Problem 57P: Charles E. Bennett, age 64, will retire next year and is trying to decide whether to begin...
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Transcribed Image Text:Larren Buffett is concerned after receiving her weekly paycheck. She believes that her deductions for Social Security, Medicare, and
Federal Income Tax withholding (FIT) may be incorrect. Larren is paid a salary of $4,100 weekly. She is married, filing jointly and prior to
this payroll check has total earnings of $140,000. What are the correct deductions for Social Security, Medicare, and FIT? Assume a
rate of 6.2% on $142,800 for Social Security and 1.45% for Medicare.
Note: Round your answers to the nearest cent.
Social Security taxes
Medicare taxes
FIT
Deductions
$
$
$
254.20
59.45
8.99
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