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 interim calculations, only round final answer to two decimal points.)
A) $123.95
B) $103.31
C) $98.67
D) $106.34

Question

Quizplus · Accepted Answer

To calculate the Social Security tax deduction, we need to use the current tax rate of 6.2%. 
Annual Social Security tax deduction = $43,325 x 6.2% = $2,685.45
Biweekly Social Security tax deduction = $2,685.45 / 26 = $103.31 (rounded to the nearest cent) 
Therefore, the correct answer is B.

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