1 / 8

6-5 SOCIAL SECURITY AND MEDICARE

Learn how to calculate paycheck deductions for Social Security and Medicare, understand the tax rates, maximum taxable income, and key terms. Includes examples and practice problems for better comprehension.

rsilveira
Download Presentation

6-5 SOCIAL SECURITY AND MEDICARE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 6-5SOCIAL SECURITY AND MEDICARE OBJECTIVES To compute paycheck deductions for Social Security. To computepaycheck deductions for Medicare.

  2. Social Security Federal Insurance Contributions Act (FICA) FICA tax Social Security tax Medicare tax maximum taxable income Social Security number Key Terms

  3. Example 1 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?

  4. Example 2 Express the Social Security tax for 2006 as a piecewise function.

  5. EXAMPLE 3 Graph the Social Security tax piecewise function from Example 2.

  6. CHECK YOUR UNDERSTANDING Mark's Social Security tax was $3,500 during the year in the graph in Example 3. Use the graph to approximate his taxable income.

  7. EXAMPLE 4 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?

  8. CHECK YOUR UNDERSTANDING In 1988 Ramona paid $2,853.80 in Social Security tax. What was Ramona's taxable income in 1988?

More Related