Answer:
Therefore, it is more than $8,800. So, the correct answer is B
Explanation:
In the year 2016, Social insurance tax was 7.65%
From 7.65%, 6.20% applicable for social security tax upto the income of $118,500 and 1.45% to Medicare for all the earnings.
Aggregate income = $125,000
Social security tax = $118,500 × 6.20%
= $7,347
Medicare tax = $125,000 × 1.45%
= $1,812.5
Total Social insurance tax = Social security tax + Medicare tax
= $7,347 + $1,812.5
= $9,159.50
Therefore, it is more than $8,800. So, the correct option is B
