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Question
A social securit y tax of 6.2 % applies to a maximum wage of $87,900. The Medicare tax rate of 1.45 % applie s to all wages. What total did Liza pay for these two taxes on her yearly income of$90,000?
Solution
VerifiedAnswered 1 year ago
Answered 1 year ago
Step 1
1 of 6In this exercise, we calculate the total amount Liza has to pay for her Medicare and Social Security Taxes given that she has an annual income of . The social security taxes make up of her annual pay up to while the medicare tax makes up of all wages.
What values are we going to find so that we can calculate the total taxes?
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