Question

Joe Bob is an employee of Rollo Corporation who receives a salary of $16,800 per month. How much Social Security tax will be withheld from Joe Bob's salary for the months listed?

Answer 1

$1041.6 monthly

Step-by-step explanation:

Note that as an employee half (6.2%) of the Social Security tax will be withheld by his employer. In the social security tax, a fixed rate of 12.4% is paid up to a salary limit of $132,900.

Therefore, as long as he maintains a fixed salary, Joe would continue to pay the same social security tax rate.