Carolyne is paid $$ \$ 1000 $$ biweekly. This year, to date, she has earned $$ \$ 25,300 $$. What will be the total deduction for Social Security and Medicare taxes on her next paycheck? (Social Security tax is $$ 6.2 \% $$ of gross wages up to $$ \$ 87,900 $$. Medicare tax is $$ 1.45 \% $$ of all gross wages.) Select one: a. $$ \$ 155.80 $$ b. $$ \$ 94.60 $$ c. $$ \$ 76.50 $$ d. $$ \$ 213.05 $$

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To determine the total deduction for Social Security and Medicare taxes on Carolyne's next paycheck, we'll follow these steps:

1. **Calculate Social Security Tax:**
   - **Rate:** 6.2%
   - **Gross Wages for Next Paycheck:** \$1,000
   - **Calculation:** $$ 0.062 	imes \$1,000 = \$62.00 $$

2. **Calculate Medicare Tax:**
   - **Rate:** 1.45%
   - **Gross Wages for Next Paycheck:** \$1,000
   - **Calculation:** $$ 0.0145 	imes \$1,000 = \$14.50 $$

3. **Total Deduction:**
   - **Social Security:** \$62.00
   - **Medicare:** \$14.50
   - **Total:** \$62.00 + \$14.50 = \$76.50

**Important Consideration:**
Carolyne has already earned \$25,300 this year. The Social Security tax is applied up to a maximum of \$87,900. Adding her next paycheck (\$1,000) brings her total earnings to \$26,300, which is still below the Social Security cap. Therefore, the full Social Security and Medicare rates apply to her next paycheck.

**Answer:**

**c. $$ \$ 76.50 $$**
The total deduction for Social Security and Medicare taxes on Carolyne's next paycheck is \$76.50.

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