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Ty has cumulative earnings of $\$107107,600600. This week he is paid $\$33,000000. What's the total amount of Social Security tax for this week? Assume a rate of 6.2%6.2\% on $\$110110,100100 for Social Security and 1.45%1.45\% for Medicare.

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Q. Ty has cumulative earnings of $\$107107,600600. This week he is paid $\$33,000000. What's the total amount of Social Security tax for this week? Assume a rate of 6.2%6.2\% on $\$110110,100100 for Social Security and 1.45%1.45\% for Medicare.
  1. Calculate Total Earnings: Calculate Ty's total earnings including this week's pay.\newlineTotal earnings = Previous earnings + This week's pay\newline= $107,600\$107,600 + $3,000\$3,000\newline= $110,600\$110,600
  2. Determine Taxable Earnings: Determine the amount of earnings subject to Social Security tax. Social Security tax applies to earnings up to $110,100\$110,100. Since Ty's total earnings are $110,600\$110,600, only $110,100\$110,100 is subject to the Social Security tax.
  3. Calculate Social Security Tax: Calculate the Social Security tax for this week.\newlineSocial Security tax = Earnings subject to Social Security tax ×\times Social Security tax rate\newline= $110,100×6.2%\$110,100 \times 6.2\%\newline= $110,100×0.062\$110,100 \times 0.062\newline= $6,826.20\$6,826.20

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