Calculation of Social Security Tax and Marginal, Average and Effective Tax Rates on Social Security Taxes (LO. 1)

Rory earns $70,000 per year as a college professor. Latesia is a marketing executive with a salary of $140,000. With respect to the Social Security tax (OASDI: 6.2%; MHI: 1.45%) calculate the following:

(Hint: OASDI 6.2% tax is only on max of $128,400 for the year.)

When required, round the total taxes to two decimal places.

a.

Rory's total FICA taxes: $
Latesia's total FICA taxes: $
Rounding instructions for parts (b), (c), and (d): When required, round the tax rates to two decimal places.

b.

Rory's marginal tax rate: %
Latesia's marginal tax rate: %
c.

Rory's average tax rate: %
Latesia's average tax rate: %
d.

Rory's effective tax rate: %
Latesia's effective tax rate: %

Rory wages tax:    $  5,355.00

Latesia wages tax $  9,990.80

marginal tax-rate Rory: 7.65%

while Latesia:                 1.45%

Rory average tax rate 7.65‬%

Latesia Average tax-rate 7.14%

Explanation:

Rory wages tax:

70,000 x (0.062 + 0.0145) = $5,355

Latesia wages tax

128,400 x 0.062 + 140,000 x 0.0145 =

7,960.8 + 2,030 = 9,990.8

marginal tax-rate Rory will be taxes in full for his next dollar of income: 7.45%

while Latesia already capped OASDI therefore it will be taxes only for MHI: 1.45%

effectiver/average tax rate:

5,355 / 70,000  = 0,0765‬

9,990.8 / 140,000 = 0,0713628

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

your welcome leave a rate and a < 3