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Jeff Jones earns $1,200 per week. He's married and claims four withholding allowances. The social security rate is 6.2% on $118,500, and Medicare is 1.45%. Each paycheck, his employer also deducts $42.50 for health insurance. What's his net pay?
I know that I take the heath insurance for anything else is done. Which is $1200.00 minus $42.50 which gives me a balance amount $1157.50
Here is where I am confused, the problem states that SS tax is on the first $118,500. Am I supposed to take the weekly pay which is not the $118,500 so calculating the $1200 . Or am I supposed to the weekly pay time 48 weeks then subtract the $118,500.
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