In 2016, the maximum taxable income for Social Security was $118,500 and the tax rate was 6.2%. If Andrew made 243,000 in 2016, how much did he pay in Social Security tax?I
Mathematics · Middle School · Tue Nov 03 2020
Answered on
Given:
The maximum taxable income for Social Security was $118,500 and the tax rate was 6.2%
Determine how much did Andrew paid in Social Security tax if he made $243,000 in 2016.
Solution:
Since we are given the rate of tax, we must convert it first into decimal. In converting a percentage into decimal, divide the percentage by 100, hence in converting a decimal to percentage, multiply the percentage by 100.
= 6.2/100
= 0.062
Multiply the decimal by the total earnings.
=(243,000)(0.62)
= $15,066
Final answer:
Andrew paid $15,066 in Social Security Tax.