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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

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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 $\$90,000$. The social security taxes make up $6.25\%$ of her annual pay up to $\$87,900$ while the medicare tax makes up $1.45\%$ of all wages.

*What values are we going to find so that we can calculate the total taxes?*

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