Answer:
B: After Taxes
Explanation:
A: A pre-tax deduction is money that is taken out of your employee's gross pay before any taxes are withheld from their paycheck. Pre-tax deductions reduce an employee's taxable income, which means they will likely owe less income tax and/or FICA tax (which includes Social Security and Medicare).
B: After-tax income is the net income after the deduction of all federal, state, and withholding taxes. After-tax income also called income after taxes, represents the amount of disposable income that a consumer or firm has available to spend.
C: The federal government also deducts money as your contribution to its Social Security and Medicare programs. You'll be required to give a percentage of your income, currently 6.2% for Social Security and 1.45% for Medicare, to help fund these programs.
D: The Social Security tax rate in the United States is currently 12.4%. However, you only pay half of this amount, or 6.2%, out of your paycheck -- the other half is paid by your employer
