Question

Employees in 2012 paid 4.2% of their gross wages towards social security (FICA tax), while employers paid another 6.2%. How much will someone earning $31,000 a year pay towards social security out of their gross wages ?

Answer 1

$1302

Explanation:

We have been given that employees in 2012 paid 4.2% of their gross wages towards social security (FICA tax), while employers paid another 6.2%. We are asked to find the amount paid by someone towards social security out of their gross wages earning $31,000 a year.

The amount paid by a person earning $31,000 a year towards FICA tax would be 4.2% of $31,000 because employers pay from their own treasury.

`\text{Amount paid towards social security}=\$31,000*(4.2)/(100)`

`\text{Amount paid towards social security}=\$31,000*0.042`

`\text{Amount paid towards social security}=\$1302`

Therefore, the person will pay $1302 towards social security.