Reference no: EM132592746

You have a job at a real-estate agency in the small country of Frugalia, where you are paid 72,000 francs (the currency of Frugalia) a year. You are now faced with the decision of whether to work a second job at the local university teaching a real-estate investing class, where the pay is 45,000 francs a year. Social insurance tax and income tax rates are listed below.

Social insurance taxes: 7.65% on your first 110,100 francs of total income

Income taxes: Taxable income (in francs) Tax rate

0-8,700 10%

8,700-35,350 15%

35,350-85,650 25%

85,650-178,650 28%

Question 1: Using the information above, what would be the total amount you pay in social insurance taxes on your second job?

Question 2: What is your income tax bill for the second job?

Question 3: What is your total tax bill for the new job?