Social Security and Medicare Answers

Which of the following statements accurately describes the result of a decreasing worker-per-beneficiary ratio in the Social Security system?

Which of the following statements explains the relationship between Social Security and Medicare taxes?

One possible solution to a diminishing Social Security payroll is to decrease the Social Security benefit by 13%. How would such a decrease effect the benefits on a salary of $54,000?

Which of the following criteria would not make a person eligible to receive medicare benefits?

Social Security offers all but which of the following benefits?

Sally has just finished her thirty-fifth year with her company and is getting ready to retire. During her thirty-five years, Sally’s average annual salary was $45,603. How much can Sally expect to receive from Social Security annually if she were to retire today? (Assume she will receive 42% of her average annual salary.)

For each of the following wages, determine the Medicare tax that would be withheld.i. $23,660ii. $89,000iii. $166,090

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $235,430. Use $106,800 for maximum taxable earnings.

Determine the total annual FICA tax for an annual salary of $38,480. (FICA is 7.65%)

For each of the following wages, determine the Social Security tax that would be withheld. Use $106,800 for maximum taxable earnings. i. $23,660 ii. $89,000 iii. $166,090

Henry is up for retirement after 35 long years at his pharmacy. Before retiring, he would like to know how much he would receive each month from Social Security if he were to retire. During his 35 years, Henry averaged an annual salary of $45,620. Assuming he would receive 42% of his annual average each year, how much can Henry expect to receive from Social Security on a monthly basis?

Christina will be retiring next month from her job after 35 years as a school bus driver. Over the last 35 years, Christina’s annual salary averaged $22,040. She expects to receive some money each month from Social Security and plans to take the rest of the money she needs to pay the monthly bills from savings. Each month her bills total to about $1,375. Assuming her annual Social Security benefit will be 42% of her salary average, how much will she need to take from savings each month to help pay the bills?

Determine the total annual FICA tax for an annual salary of $165,000. Use $106,800 for maximum taxable earnings.

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $56,010.