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Sarah Conner is an employee working for Cyberdyne Industries

Sarah Conner is an employee working for Cyberdyne Industries as a custodial worker. On her pay stub (given to her to confirm her direct deposits) she found that Cyberdyne withheld \$85 worth of Social Security and Medicare taxes based off the combined percentages of 6.20 and 1.45%. In regard to Sarah's paycheck only, how much is Cyberdyne required to submit as their portion of Social Security and Medicare taxes?
A. \$83.77; of the \$85 Cyberdine is responsible for the majority of the tax while Sarah is responsible for 1.45%
B. \$1.23; of the \$85 Sara is responsible for the majority of the tax while Cyberdine is only responsible for 1.45%
C. \$170
D. \$85
E. None of the other answers

Solution Preview

Actually, the percentages used in the problem, are wrong (it's 4.2% and 1.45%). We'll handle this problem as if they were correct.

E. None of the other answers because the wrong percentages are being used. Based on the wrong information as stated, the answer would be D.

See below:

-- This is wrong with new and old percentages. According to the old way, the ...

Solution Summary

Sarah Conner is an employee working for Cyberdyne Industries as a custodial worker. On her pay stub (given to her to confirm her direct deposits) she found that Cyberdyne withheld \$85 worth of Social Security and Medicare taxes based off the combined percentages of 6.20 and 1.45%. In regard to Sarah's paycheck only, how much is Cyberdyne required to submit as their portion of Social Security and Medicare taxes?