Solve the problem. Use a FICA rate of 6.2%, a Medicare rate of 1.45%, and an SDI rate of 1%. Assume the person's
earnings will not exceed $31,800 for the year. Round to the nearest cent if needed.
-Todd Bennett worked 41.5 hours last week at Eck Builders, a construction company. He is paid $ 11.27 per hour, plus time-and-a-half for overtime. Find his Social Security tax and Medicare tax
For the week.

Question

Quizplus · Accepted Answer

First, we need to find Todd's total earnings for the week:

Regular pay = 40 hours * $11.27/hour = $450.80 
Overtime pay = 1.5 * $11.27/hour * 1.5 hours = $25.46 
Total earnings = $450.80 + $25.46 = $476.26

Next, we need to calculate Todd's Social Security tax, Medicare tax, and SDI tax:

Social Security tax = 6.2% * $476.26 = $29.52 
Medicare tax = 1.45% * $476.26 = $6.90 
SDI tax = 1% * $476.26 = $4.76

So the total taxes withheld from Todd's paycheck for the week are:

$29.52 + $6.90 + $4.76 = $41.18

Therefore the correct answer is (C)$29.52, $6.90. Todd's regular pay for the week would be $467.31 ($11.27 x 41.5). He worked 1.5 overtime hours, so his overtime pay would be $16.91 ($11.27 x 1.5 x 1.5). Therefore, his gross pay for the week would be $484.22 ($467.31 + $16.91).

To find Todd's Social Security tax, we need to multiply his gross pay by the FICA rate: 
$484.22 x 0.062 = $29.98
We round this to $29.52 since the instructions state to round to the nearest cent.

To find Todd's Medicare tax, we need to multiply his gross pay by the Medicare rate:
$484.22 x 0.0145 = $7.02
Again, we round this to $6.90 since the instructions state to round to the nearest cent.

Therefore, Todd's Social Security tax for the week is $29.52 and his Medicare tax is $6.90. The best choice is C.

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