A portion of the payroll taxes is paid by workers and matched by their employers.In 2011,workers and their employers each paid _____ percent on every dollar of salary or wages paid.

Question

Quizplus · Accepted Answer

The current payroll tax rate for Social Security is 6.2% for employees and 6.2% for employers, totaling 12.4%. Therefore, each paid 6.2% in 2011, which is equivalent to 0.062 as a decimal, so the total payroll tax rate is 0.062 + 0.062 = 0.124 or 12.4%. To convert it to a percentage, we multiply by 100: 12.4%. Therefore, the correct answer is (C) 1.45.

A Portion of the Payroll Taxes Is Paid by Workers