Question

Suppose you land a job with Google right out of college. Your economics training is very valuable to them, so you receive a starting annual salary of $65,000. What is the total amount of social insurance taxes you will be responsible for after your first year of work?a. $4,972.50b. $4,030.00c. $9,945.00d. $9,750.00e. $942.50

Answer 1

Answer:

B) $4,030.00

Explanation:

Your total social insurance taxes represent 12.4% of your gross income. You are responsible for paying half of those taxes (6.2%) and your employer must pay the other half.

So you will have to pay $4,030 (= $65,000 x 6.2%) in social security taxes for your first year of work.