For wages less than the maximum taxable wage base, Social Security contributions (including those for Medicare) by
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Question:
(a) Find an equation that expresses the relationship between the wages earned (x) and the Social Security taxes paid (y) by an employee who earns less than the maximum taxable wage base.
(b) For each additional dollar that an employee earns, by how much is his or her Social Security contribution increased? (Assume that the employee's wages remain less than the maximum taxable wage base.)
(c) What Social Security contributions will an employee who earns $55,000 (which is less than the maximum taxable wage base) be required to make?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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