1. **State the problem:** Calculate Social Security (SS) tax, Medicare tax, and total deductions for given gross pay values using the tax rates. 2. **Formulas and tax rates:** - Social Security tax rate = 6.2% = 0.062 - Medicare tax rate = 1.45% = 0.0145 Formulas: $$\text{SS tax} = \text{Gross Pay} \times 0.062$$ $$\text{Medicare tax} = \text{Gross Pay} \times 0.0145$$ $$\text{Total deductions} = \text{SS tax} + \text{Medicare tax}$$ 3. **Calculate for each gross pay:** For example, for row 4 with Gross Pay in cell B4: $$\text{SS tax} = B4 \times 0.062$$ $$\text{Medicare tax} = B4 \times 0.0145$$ $$\text{Total deductions} = (B4 \times 0.062) + (B4 \times 0.0145)$$ 4. **Apply to all rows:** - Row 4: SS tax = $432.00 \times 0.062 = 26.78$ - Row 4: Medicare tax = $432.00 \times 0.0145 = 6.26$ - Row 4: Total deductions = $26.78 + 6.26 = 33.04$ - Row 6: SS tax = $1562.00 \times 0.062 = 96.84$ - Row 6: Medicare tax = $1562.00 \times 0.0145 = 22.65$ - Row 6: Total deductions = $96.84 + 22.65 = 119.49$ (rounded to 119.50) 5. **For annual gross pay and pay periods:** Calculate SS and Medicare tax per pay period: $$\text{SS tax per period} = \frac{\text{Annual Gross Pay} \times 0.062}{\text{Pay Periods}}$$ $$\text{Medicare tax per period} = \frac{\text{Annual Gross Pay} \times 0.0145}{\text{Pay Periods}}$$ Example for J. Otto (row 23): $$\text{SS tax} = \frac{76432 \times 0.062}{12} = 394.90$$ $$\text{Medicare tax} = \frac{76432 \times 0.0145}{12} = 92.36$$ 6. **For other rows, apply the same formula with their respective cells.** 7. **For 4.0 Problems table:** Use the same formulas for each gross pay in column B: Example for row 8: $$\text{SS tax} = 6223.00 \times 0.062 = 385.83$$ $$\text{Medicare tax} = 6223.00 \times 0.0145 = 90.23$$ $$\text{Total deductions} = 385.83 + 90.23 = 476.06$$ **Final formulas for spreadsheet cells:** - Social Security tax: **=GrossPayCell*0.062** - Medicare tax: **=GrossPayCell*0.0145** - Total deductions: **=SocialSecurityTaxCell+MedicareTaxCell** These formulas dynamically calculate taxes based on the gross pay cell values.