Every worker sees a social security tax

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Reference no: EM131102442

Every worker sees a Social Security (FICA) tax taken out of his or her paycheck. The nominal tax rate on workers is 7.65 percent. But there's a catch: only wages below a legislated ceiling are taxable. In 2014, the table wage ceiling was $117,000. What percentage of income is paid in Social Security taxes by a worker in 2014 earning:

Instructions: Enter your responses as a percent rounded to two decimal places.

(a) $40,000? _____%

(b) $80,000? _____%

Instructions: Enter your response as a percent rounded to one decimal place.

Reference no: EM131102442

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