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If someone paid $1,160 in Medicare in 2013, how much did they pay in Social Security?

Medicare is 1.45% and Social Security is 6.2% up to $115,000.

User Samshers
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Final answer:

After calculating the gross income based on the Medicare tax paid, the amount paid for Social Security tax was determined using the given Social Security tax rate of 6.2%. The individual's Social Security tax payment for 2013 was found to be $4,960.

Step-by-step explanation:

To determine the amount of Social Security tax paid if the Medicare tax paid was $1,160 in 2013, we can use the respective tax rates applicable to each program. Given that the Medicare tax rate is 1.45%, we can first find the individual's gross income by dividing the amount of Medicare tax paid by the Medicare tax rate:

Gross Income = Medicare Tax Paid / Medicare Tax Rate

Gross Income = $1,160 / 0.0145

Gross Income = $80,000

Now knowing the gross income, we use the Social Security tax rate of 6.2% to calculate the Social Security tax:

Social Security Tax = Gross Income × Social Security Tax Rate

Social Security Tax = $80,000 × 0.062

Social Security Tax = $4,960

Therefore, if an individual paid $1,160 in Medicare tax, they paid $4,960 in Social Security tax in 2013, assuming their income did not exceed the wage limit for Social Security taxation.

User Moorthy G
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