Susanna and Mario each earn $70,000 a year from their jobs.Meanwhile,Clayton earns $140,000 a year at his job and his wife,Leah,does not work outside the home.What can be concluded about their Social Security taxes?

Question

Quizplus · Accepted Answer

Social Security taxes are calculated as a percentage of the individual's income, up to a certain limit. For the year 2021, the Social Security tax rate is 6.2% for employees and employers, and the income cap is $142,800. Therefore, Susanna and Mario will each pay 6.2% of their $70,000 income, which is $4,340. Clayton will pay 6.2% of his $140,000 income, which is $8,680. Leah does not work outside the home and therefore does not pay any Social Security taxes. Thus, Susanna and Mario pay a total of $8,680 in Social Security taxes, and Clayton pays the same amount. Therefore, the best choice is C.

Susanna and Mario Each Earn $70,000 a Year from Their