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Question 1141875: 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 $80,000 (which is less than the maximum taxable wage base) be required to make?
$
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! the social security tax is 7.65% of the employee's wages.
let y represent the social security tax and let x represent the employee's wages and you get the following formula.
y = .0765 * x
y represents the social security tax.
x represents the employee's wages.
wages and the tax are assumed to be in dollars.
for each additional dollar that the employee earns, the social security tax is increased by .0765 dollars.
if the employee earns 80,000 dollars, then the social security tax is .0765 * 80,000 = 6,120 dollars.
that is the employee's contribution to social security.
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