Question

Employees in 2012 paid 4.2% of their gross wages toward social security (FICA tax), while employers paid another 6.2%. How much will someone earning 73,000 a year pay toward social security out of their gross wages

Answer 1

Answer:

$3066

Step-by-step explanation:

We have been given that employees in 2012 paid 4.2% of their gross wages toward social security (FICA tax), while employers paid another 6.2%. We are asked to find the amount paid by an employee earning $73,000 per year toward social security.

To find the amount paid by an employee with annual gross earnings of $73,000, we need to find 4.2% of $73,000.

$\text{Amount paid by the employee}=\ 73,000\times \frac{4.2}{100}$

$\text{Amount paid by the employee}=\ 730\times \frac{4.2}{1}$

$\text{Amount paid by the employee}=\ 3066$

Therefore, the employee will pay $3066 toward social security out of their gross wages.