1. **State the problem:** Calculate the Social Security tax, Medicare tax, and total tax deduction for a gross pay of $125.00 using the Social Security tax rate of 6.2% and Medicare tax rate of 1.45%. 2. **Formulas and rules:** - Social Security tax = Gross Pay \times 6.2\% = Gross Pay \times 0.062 - Medicare tax = Gross Pay \times 1.45\% = Gross Pay \times 0.0145 - Total deduction = Social Security tax + Medicare tax 3. **Calculate Social Security tax:** $$\text{Social Security tax} = 125.00 \times 0.062 = 7.75$$ 4. **Calculate Medicare tax:** $$\text{Medicare tax} = 125.00 \times 0.0145 = 1.8125$$ 5. **Calculate total deduction:** $$\text{Total deduction} = 7.75 + 1.8125 = 9.5625$$ 6. **Final answer:** - Social Security tax withheld: $7.75$ - Medicare tax withheld: $1.81$ (rounded to two decimals) - Total deduction: $9.56$ (rounded to two decimals)