Question

Jake got his first job in 2010. In that year, the government took out 7.45% of each income for Social Security and Medicare, until a person made $51,300. If Jake earned$31,340 in 2010, how much did he pay to Social Security and Medicare? Clearly show your work.

1. Jake’s Social Security and Medicare for the year 2010 is $2,334.83 What threshold of income does 7.45% as Social Security and Medicare? The threshold in this case refers to a range of income that would be charged to Social Security and Medicare at the rate of 7.45%, in essence, it is the income of$0 to $51,300, since Jake’s income falls within the range, his Social Security and Medicare payment would be 7.45% of his income . Social Security and Medicare payment=rate*Jake’s income rate=7.45% Jake’s income=$31,340
Social Security and Medicare payment=7.45%*$31,340 Social Security and Medicare payment=$2,334.83
The amount that Jake would have paid out of his income of $31,340 as Social Security and Medicare in the tax year of 2010 is$2,334.83.