00:01
So to calculate the annual deduction for federal and state income taxes, we need more information about sam's tax rates and any other relevant details.
00:08
The provided deductions 6 .2 % for social security and 1 .45 % for medical insurance are not related to federal and state income tax.
00:16
Therefore, i'll be giving a short example.
00:21
So hypothetically, if we had, if the annual salary of $40 ,000 was applied and we had a 5 % for social security, 2 % for medical tax, and $100 for health care insurance, we can now calculate the total annual deductions for federal and state income taxes.
01:00
The purpose of this example, we use hypothetical tax rates of 10 % for federal income tax and 5 % for state income tax.
01:07
So 10 % and 5%.
01:10
So social security, 5 % of john's annual salary.
01:13
So that's going to equal 0 .05 times 40 ,000, which gives us $2 ,000.
01:21
Now we have our medicare tax of 2%...