Calculate the Social Security and Medicare deductions for the following employee (assume a tax rate of 6.2% on $128,400 for Social Security and 1.45% for Medicare): (Round your answers to the nearest cent.)

Social Security tax = $7,960.80

Medicare tax = $1,861.80

Explanation:

Let's begin by listing out the information given:

Social Security tax rate = 6.2%,

Medicare tax rate = 1.45%,

Income = $128,400

To calculate for the deductions(tax), we use the formula:

Tax = Tax rate * Income

For Social Security

Tax = Tax rate * Income

Tax = 6.2% * $128,400

T = 0.062 * $128,400

T = $7,960.80

∴ $7,960.80 of the employee's income is deducted for Social Security tax

For Medicare

Tax = Tax rate * Income

Tax = 1.45% * $128,400

T = 0.0145 * $128,400

T = $1,861.80

∴ $1,861.80 of the employee's income is deducted for Medicare tax