Steve is a full-time exempt employee at a local electricity co-operative. He earns an annual salary of $43,325 and is paid biweekly. What is his Social Security tax deduction for each pay period? (Do not round intermediate calculations. Round your ﬁnal answer to 2 decimal places.)
A) $98.67
B) $106.34
C) $103.31
D) $123.95

Question

Quizplus · Accepted Answer

To calculate Steve's Social Security tax deduction for each pay period, we need to multiply his annual salary by the Social Security tax rate. The Social Security tax rate for 2021 is 6.2%.

First, we need to calculate Steve's biweekly salary: 
$43,325 / 26 pay periods = $1,665.38

Next, we can calculate his Social Security tax deduction for each pay period: 
$1,665.38 x 0.062 = $103.31

Therefore, the correct answer is (C) $103.31.

Steve Is a Full-Time Exempt Employee at a Local Electricity