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

Question

Fleming

Business

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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Answers (1)

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Raegan Burke · Answer 1

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