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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 ?

1 Answer

5 votes

Answer:

$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.

User RamblingMad
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