Final answer:
If an employee made over $117,000 in 2014, they would still have payroll taxes deducted from their paycheck for Social Security and Medicare. The employer and employee split the payroll taxes, but the employee is usually responsible for the full amount.
Step-by-step explanation:
In 2014, if an employee made over $117,000 in wages, they would still have 6.2% deducted from their paycheck for Social Security and 1.45% for Medicare.
The payroll taxes for Social Security are imposed at a rate of 12.4% up to a certain wage limit, set at $117,900 in 2014. Medicare, on the other hand, pays for elderly healthcare and is fixed at 2.9%, with no upper ceiling.
It's important to note that in both cases, the employer and the employee split the payroll taxes, but economists suggest that the employer's portion is often passed along to employees in the form of lower wages.