The Social Security Administration increased the taxable wage base from $127,200 to $128,400. The 6.2% tax rate is unchanged. JoeBurns earned over $129,700 each of the past two years.a. What is the percent increase in the base? (Round your answer to the nearest hundredth percent.)Percent increase%b. What is Joe's increase in Social Security tax for the new year? (Round your answer to the nearest cent.)Increase in social security tax< PRM14 of 16Next >

1. Percentage increase in the base = [ (Revised Base - Original Base) / Original Base ] x 100 2.…

Answered: a. What is the percent increase in the…

a. What is the percent increase in the base? (Round your answer Percent increase b. What is Joe's increase in Social Security tax for the new year? ( 96

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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Question

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The Social Security Administration increased the taxable wage base from $127,200 to $128,400. The 6.2% tax rate is unchanged. Joe
Burns earned over $129,700 each of the past two years.
a. What is the percent increase in the base? (Round your answer to the nearest hundredth percent.)
Percent increase
%
b. What is Joe's increase in Social Security tax for the new year? (Round your answer to the nearest cent.)
Increase in social security tax
< PRM
14 of 16
Next >

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