Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 176

Facts:
• 1935: Social Security Act passed
• 1937: First Social Security taxes collected
• 1965: Medicare established
• 2010: More than 50 million receive Social Security payments
• 2011: More than 43 million receive Medicare benefits
Sarah Brynski is busy running a Starbucks and thinking about inventory, making sure the store looks great, ensuring good service, hiring good people, motivating employees, maintaining inventories, calculating wages, deducting correct amounts for the various taxes, and getting the payroll done on time every week. She is also interested in finding ways to increase sales since part of her income is based on sales. Overtime is paid for more than 40 hours a week, the state tax rate is 3.07 , and the state disability income rate (SDI) is 1.
Find the amount Brynski must send to the state including income tax and disability insurance.