An athlete making 7,000,000 pays 6.2% on the full 7,000,000 dollars in Social Security Taxes.

Question

Quizplus · Accepted Answer

The athlete would not pay Social Security taxes on the full 7,000,000 dollars. Social Security taxes are only applied to a portion of income, up to a certain maximum. In 2021, the maximum amount of earnings subject to Social Security tax is $142,800. Therefore, the athlete would only pay Social Security taxes on the portion of their income up to $142,800, and not on the full 7,000,000 dollars.

An Athlete Making 7,000,000 Pays 6