Social Security and Medicare

Question 1

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.

Revolt · Accepted Answer

Social Security tax: $6,621.60, Medicare tax: $3,413.70

Question 2

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

Revolt · Accepted Answer

Fewer taxed workers than beneficiaries means that more money is being drawn from the system for the money put in. This leaves a shortage of money in the system making benefits for future beneficiaries unsure.

Question 3

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

Revolt · Accepted Answer

$2,943.72

Question 4

If a 6.2% Social Security tax is applied to a maximum wage of $106,800, the maximum amount of Social Security tax that could ever be charged in a single year is:

Revolt · Accepted Answer

$6,621.60

Question 5

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

Revolt · Accepted Answer

The person has a terminal illness.

Question 6

Which group or groups can typically draw benefits that are funded by Social Security taxes? I. Disabled workers II. Laid-off workers III. Family members of deceased workers

Revolt · Accepted Answer

I and III

Question 7

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

Revolt · Accepted Answer

Social Security tax: $3,472.62, Medicare tax: $812.15

Question 8

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?

Revolt · Accepted Answer

$1,596.70

Question 9

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?

Revolt · Accepted Answer

Benefit would decrease by $7,020 annually.

Question 10

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

Revolt · Accepted Answer

$9,014.10

Social Security and Medicare Answers

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