Question

In 2016, the maximum taxable income for Social Security was $118,500 and the tax rate was

6.2%. If Andrew made 243,000 in 2016, how much did he pay in Social Security tax?I

Answer 1

If Andrew made $243,000 in 2016, then he paid $7,347 in social security tax.

Explanation:

The maximum taxable income for social security = $118,500

Tax rate = 6.2%

Andrew made $118,500 in 2016

Social security tax = 6.2% of $118,500 = $118,500×0.062

= $7,347