Question

Employees in 2012 paid 4.2% of their gross wages towards social security (FICA tax), while employers paid another 6.295. How much will someone earning $50,000 a year pay themselves towards social security out of their gross wages? Give your answer accurate to at least the nearest dollar.

A) $2,095
B) $2,650
C) $2,100
D) $2,645
E) $2,150

Answer 1

An individual earning $50,000 annually in 2012 would contribute $2,100 towards Social Security, since they paid 4.2% of their gross wages towards the FICA tax.

Step-by-step explanation:

The question asks how much an employee earning $50,000 a year will pay towards Social Security out of their gross wages, given that in 2012 employees paid 4.2% towards Social Security.To calculate the Social Security contribution from the employee, we use the given rate of 4.2% of their gross annual income. The calculation is 4.2% of $50,000:

• 0.042 (the decimal equivalent of 4.2%) × $50,000 = $2,100.

Therefore, an individual earning $50,000 annually would contribute $2,100 towards Social Security from their gross wages.