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1. An insurance program is available jointly
through your employer and the United States
Government, this insurance is called SOCIAL
SECURITY.
President Franklin D. Roosevelt started Social
Security in 1935. It was established in the
FEDERAL INSURANCE CONTRIBUTIONS ACT
(FICA).
When you work at a job covered by social
security, you must pay FICA TAXES.
4. Both SOCIAL SECURITY TAX and MEDICARE
TAX fall under this category.
5. The amount of Social Security tax you pay
depends on the Social Security percentage
and the MAXIMUM TAXABLE INCOME for that
year.
6. The government keeps records of the
amounts that you have paid to Social Security
and Medicare under your own SOCIAL
SECURITY NUMBER. This is a unique nine digit
number that only belongs to you.
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Ramiro got his first job in 2006. In that year,
Social Security tax was 6.2% of income up to
$94,200. Medicare tax was 1.45%. If Ramiro
earned $73,210 in 2006, how much did he
pay for Social Security and Medicare taxes?
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Express the Social Security tax for 2006 as a
piecewise function.
In 1990, Jerry’s gross pay was $78,000.
A. What was his monthly gross pay?
B. In what month did Jerry hit the maximum taxable
Social Security income?
C. How much Social Security tax did Jerry pay in
January?
D. How much Social Security tax did Jerry pay in
December?
In 1978, Dawn earned $48,000.
A.What was her monthly gross pay?
B. In what month did Dawn reach the maximum
taxable Social Security income?
C. How much Social Security tax did Dawn pay
in February?
D. How much Social Security tax did Dawn pay
in May?
E. How much Social Security tax did Dawn pay
in November?
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In 1988, Social Security tax was 7.51%, to the
maximum income of $45,000. If Grace
earned $51,211 in 1988, how much Social
Security did she pay?