Question
Calculation of Social Security Tax and Marginal, Average and Effective Tax Rates on Social Security Taxes (LO. 1) Rory earns $70,000 per year as a
Calculation of Social Security Tax and Marginal, Average and Effective Tax Rates on Social Security Taxes (LO. 1)
Rory earns $70,000 per year as a college professor. Latesia is a marketing executive with a salary of $140,000. With respect to the Social Security tax (OASDI: 6.2%; MHI: 1.45%) calculate the following:
(Hint: OASDI 6.2% tax is only on max of $128,400 for the year.)
When required, round the total taxes to two decimal places.
a.
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Rounding instructions for parts (b), (c), and (d): When required, round the tax rates to two decimal places.
b.
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c.
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d.
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