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Help please i don’t understand it

Help please i don’t understand it-example-1
User Eunsun
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2 Answers

5 votes

Answer:

A) $3720

Explanation:

The picture tells us that employers bring 6.2% of the contribution.

Divide 6.2 by 100 to see what will we have to multiply the 100% number (60,000) by to get out answer and you get 0.062.

Now, multiply 60,000 by 0.062 and you get $3720.

User CoreDo
by
7.6k points
4 votes

Answer:

A. $3720

Explanation:

You want to know the employer's contribution to the Social Security tax on a salary of $60,000 per year. The employer's Social Security tax rate is given as 6.2%.

Tax amount

The amount of tax is found by multiplying the tax rate by the quantity being taxed. Here, the employer's social security tax rate is 6.2% of an employee's salary. The salary is given as $60,000, so the amount of tax the employer pays is ...

6.2% × $60,000 = $3720

The employer contributes $3720 in Social Security tax on a salary of $60,000.

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Additional comment

Taken together with the Medicare tax, the employer pays the US government a total of 15.3% of the employee's salary. The employer is allowed to deduct half that from the salary paid to the employee, so the employee sees a combined tax of 7.65%. The other 7.65% is an additional cost to the employer of hiring the employee.

This question is only asking about the employer's share of the Social Security tax, so the applicable tax rate is 6.2%.

User Mozammil
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7.7k points