Angie earned $120,000 during 2015. She is single, claims two withholding allowances, and is paid monthly. How much will Angie's employer withhold in social security taxes for 2015?

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Angie's gross income is $120,000. The Social Security tax rate is 6.2%. So, Angie's Social Security tax liability is $120,000 x 0.062 = $7,440. However, Angie is claiming two withholding allowances, which means that her employer will withhold less than this amount. The amount of withholding for two allowances is $7,347.00.

Angie Earned $120,000 During 2015