Question

An employee earned 44600 during the year working for an employer when the maximum limit for social security was 137700. What percentage of the maximum limit did the employee earn?

1) 32.4%
2) 42.4%
3) 52.4%
4) 62.4%

Answer 1

The employee earned 32.4% of the maximum limit for Social Security by dividing their annual income ($44,600) by the Social Security maximum limit ($137,700) and multiplying the result by 100.

Step-by-step explanation:

To calculate the percentage of the maximum limit that the employee earned, you divide the employee's annual income by the maximum income limit for Social Security taxes and then multiply by 100. In this case, the employee earned $44,600 during the year and the maximum limit for Social Security was $137,700.

To find the percentage:

Percentage = (Employee's earnings / Maximum limit) × 100

Percentage = ($44,600 / $137,700) × 100

Percentage = 0.32397785 × 100

Percentage = 32.4%

Therefore, the employee earned 32.4% of the maximum limit for Social Security.