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Spencer has a job that pays $37,200 annually. How much is withheld from his paychecks each year for Social Security?

User Chirag K
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Answer: In the United States, the Social Security tax rate for employees is currently 6.2% on income up to a certain limit, which changes annually. For the year 2021, the Social Security tax is withheld on income up to $142,800.

To find out how much is withheld from Spencer's paychecks each year for Social Security, we can use the following formula:

Social Security withholding = (Social Security tax rate) x (income subject to Social Security tax)

In this case, the income subject to Social Security tax is Spencer's annual salary of $37,200, since this is below the limit of $142,800. Therefore:

Social Security withholding = 0.062 x $37,200

Social Security withholding = $2,307.60

So Spencer's employer would withhold approximately $2,307.60 from his paychecks each year for Social Security.

User Kgilden
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