SOLUTION: For wages less than the maximum taxable wage base, Social Security contributions (including those for Medicare) by employees are 7.65% of the employee's wages.� (a) Find an equati

Question 780293: For wages less than the maximum taxable wage base, Social Security contributions (including those for Medicare) by employees are 7.65% of the employee's wages.�
(a) Find an equation that expresses the relationship between the wages earned (x) and the Social Security taxes paid (y) by an employee who earns less than the maximum taxable wage base.

(b) For each additional dollar that an employee earns, by how much is his or her Social Security contribution increased? (Assume that the employee's wages remain less than the maximum taxable wage base.)
$
(c) What Social Security contributions will an employee who earns $50,000 (which is less than the maximum taxable wage base) be required to make?
$
Answer by psbhowmick(878) (Show Source): You can put this solution on YOUR website!
Send me an email if you need the solution for this assignment.
RELATED QUESTIONS
For wages less than the maximum taxable wage base, Social Security contributions... (answered by Theo)

A manager receives a monthly salary of $2900.00. Use the tax rates of 6.2% for social... (answered by checkley77)

2016 FICA Tax Rates1 Employee's Rates Matching Rates Paid by the Employer Self-Employed (answered by Theo)

Suppose you make $3000.00 per month. You pay a Social Security tax at a rate of 6.2% and... (answered by Theo)

GIVEN: Annual Gross Salary: $33,394 Annual Retirement Contribution: 3339.4 Annual... (answered by addingup)

GIVEN: Annual Gross Salary: $33,394 Annual Retirement Contribution: 3339.4 Annual... (answered by Boreal)

Assume a tax rate of 6.2% on $110,100 for Social Security and 1.45% for Medicare. No one... (answered by JulietG)

aSSUME bETTY MADE 6,250 BEARS. cALCULATE HER NET PAY GIVEN THAT SHE IS SINGLE. CLAIMS ONE (answered by macston,fractalier)