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1) What role does your employer play in payment of your FICA tax (social security & Medicare)?

1) What role does your employer play in payment of your FICA tax (social security & Medicare)?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1) What role does your employer play in payment of your FICA tax (social security & Medicare)? 2) Assume that the Social Security tax rate is 6% and the Social Security maximum is $140,000 per year. A) What is the effective tax rate on someone with a $70,000 salary? B) What is the effective tax rate on someone with a $140,000 salary? C) What is the effective tax rate on someone with a $1,400,000 salary?
Transcribed Image Text:1) What role does your employer play in payment of your FICA tax (social security & Medicare)? 2) Assume that the Social Security tax rate is 6% and the Social Security maximum is $140,000 per year. A) What is the effective tax rate on someone with a $70,000 salary? B) What is the effective tax rate on someone with a $140,000 salary? C) What is the effective tax rate on someone with a $1,400,000 salary?
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