Question

If Kevin pays $4,875 to Social Security in a year, what are his annual earnings approximately?

a.) $62,000
b.) $70,000
c.) $78,000
d.) $83,000

Answer 1

$78,000

Explanation:

Social Security tax is 6.2%, so we have ...

6.2% × earnings = $4875

earnings = $4875/0.062 ≈ $78,629.03

Kevin's earnings are about $78,000.