Hello Everyone, I have two practical math questions with a visual and I'd appreciate it if I could possibly get some assistance in answering these two questions. Thanks so much for your time and effort, in advance. It reads as follows:
1. What was Jennifer's gross pay for the year?
2. The amount in box 4 is incorrect. What dollar amount should have been entered in box 4?
Well, I can barely read the small print on your form W-2.
Obviously, her income(before taxes) is plain enough to see as $34,854.00
Box 4 seems to read: Social Security Tax. If that is correct, my understanding is that the tax rate for 2018 on any income below $128,400 is 6.2%. If you multiply her gross income of $34,854.00 x 0.062 =$2,160.95 - which should be the tax in Box 4. The amount in Box 4 of $2,164.44 seems to have been calculated at 6.21%, which is a very small difference of $3.49. I hope that is correct. Good luck to you.
Thanks so much for your help. For the first answer, I worked the problem out myself too and I got the same answer so I believe I figured it out. My math teacher is new and can't really teach the material to the class that well. I thank you again for your help. :)