The Social Security retirement program is financed by a 10.6 percent payroll tax that applies to earnings up to an income cutoff that is adjusted upward annually by the growth rate of nominal wages. As of 2016, the income cutoff was
A) $15,000.
B) $32,700.
C) $118,500.
D) $250,000.

Question

Quizplus · Accepted Answer

As of 2016, the income cutoff for the Social Security payroll tax was $118,500. This means that the 10.6 percent payroll tax applied to earnings up to this amount.

The Social Security Retirement Program Is Financed by a 10