Question

Keith feels that he has a good job. He likes what he does and is paid well for it. Last year he earned

$117,500. The Social Security tax rate last year was 6.2% of income up to a maximum taxable income of
$118,500. How much Social Security tax did Keith owe last year?

Answer 1

To calculate the Social Security tax that Keith owed last year, we can use the given information and the piecewise function we defined earlier.

Keith's income last year was $117,500, which is below the maximum taxable income of $118,500. Therefore, we will use the first part of the piecewise function to calculate his Social Security tax.

Using the function f(x) = 0.062 * x, where x represents Keith's income, we can substitute his income into the equation:

f(117,500) = 0.062 * 117,500

Calculating this expression:

f(117,500) = $7,295

Therefore, Keith owed $7,295 in Social Security tax last year.

Explanation: