₪₪₪ Some help with general payroll percentages please?
In 2006, payroll taxes amounted to 15.3% of wages up to $94,200, and 3.9% on all additional earnings.
For example, if someone earned $100,000, the total amount paid in payroll taxes would be 15.30% of $94,200 plus 3.90% of $5,800, for a total of about $14,640.
(Note that this would be split evenly between the worker and the employer–that is, the worker’s $100,000 income would be reduced by only $7,320.)
11.1. Susan earns $50,000 per year. How much do she and her employer combined pay in payroll taxes, as a fraction of her income?
A. 12.40%
B. 19.10%
C. 3.90%
D. 15.30%
Category: IRS Problems
