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23 June, 20:30

Suppose you return to college and earn an MBA, after which you get an upper-management position with Yum! Brands. If your starting salary is $125,000, and the percentages are the same as they wee in 2016, how much will ou owe in social insurance taves? a) more than $7,900 but less than $8,400 b) more than $8,800 c) more than $8,400 but less than $8,800 d) less than $7,300 e) more than $7,300 but less than $7,900

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  1. 23 June, 20:39
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    Therefore, it is more than $8,800. So, the correct answer is B

    Explanation:

    In the year 2016, Social insurance tax was 7.65%

    From 7.65%, 6.20% applicable for social security tax upto the income of $118,500 and 1.45% to Medicare for all the earnings.

    Aggregate income = $125,000

    Social security tax = $118,500 * 6.20%

    = $7,347

    Medicare tax = $125,000 * 1.45%

    = $1,812.5

    Total Social insurance tax = Social security tax + Medicare tax

    = $7,347 + $1,812.5

    = $9,159.50

    Therefore, it is more than $8,800. So, the correct option is B
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