If the Social Security tax is 6.13 percent of the gross income, what is the tax for $1,783.00? A. $10.83 B. $109.30 C. $1,083.98 D. None of these.
Question
If the Social Security tax is 6.13 percent of the gross income, what is the tax for 10.83 B. 1,083.98 D. None of these.
Solution
To calculate the Social Security tax, you need to multiply the gross income by the tax rate.
Here's how you do it:
- Convert the tax rate from a percentage to a decimal. 6.13% becomes 0.0613.
- Multiply the gross income by the tax rate.
So, 109.30
Therefore, the Social Security tax for a gross income of 109.30. So, the answer is B. $109.30.
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