5.5 Social Security and Medicare

Dr. Grumman got his first job in 1990. In that year, the government took out 7.45% of each income for Social Security , until a person made $51,300. If Dr. Grumman earned $31,340 in 1990, how much did he pay to Social Security ?

• $2,334.83

• $3,102.15

• $4,822.46

• $5,689.62

In 1978, the Social Security rate was 6.05%, up to $17,700 earned. If a person earned $50,000 in 1978, and $50,000 in 1988, what was the difference in the Social Security taxes paid?

• $1,870.94

• $1,156.33

• $2,641.72

• $2,308.65

3. In 2010, the government took out 6.2% of earnings for Social Security to a maximum taxable income of $106,800. For Medicare, 1.45% of earnings was paid. How much money would someone have to have earned in 2010 so that their payments into Medicare were equal to their payments into Social Security? Round to the nearest dollar.

• $668,152

• $456,662

• $620,556

• $512,098

4. In 1998, Lisa earned $149,461.20. The Social Security maximum taxable income was $68,400, and the Social Security percent was 6.2%.

a. What was her monthly gross pay?

• $12,455.10

• $15,837.20

• $9,852.40

• $8,772.50

4. In 1998, Lisa earned $149,461.20. The Social Security maximum taxable income was $68,400, and the Social Security percent was 6.2%.

b. In what month did Lisa hit the maximum taxable Social Security income?

• July

• May

• August

• June

4. In 1998, Lisa earned $149,461.20. The Social Security maximum taxable income was $68,400, and the Social Security percent was 6.2%.

c. How much Social Security tax did Lisa pay in May, to the nearest cent?

• $772.22

• $683.52

• $814.32

• $927.92

4. In 1998, Lisa earned $149,461.20. The Social Security maximum taxable income was $68,400, and the Social Security percent was 6.2%.

d. How much Social Security tax did Lisa pay in June, to the nearest cent?

• $0

• $219.11

• $156.91

• $379.72

4. In 1998, Lisa earned $149,461.20. The Social Security maximum taxable income was $68,400, and the Social Security percent was 6.2%.

e. How much Social Security tax did Lisa pay in July, to the nearest cent?

• $214.58

• $0

• $123.78

• $389.10

Referencing the chart on your homework page:

5. In 2010, for the first time since 2004 the maximum taxable income was not raised. Find the maximum a person could pay into Social Security for 2010.

• $3,216.72

• $5,339.14

• $6,621.60

• $4,581.58

Referencing the chart on your homework paper:

6. Mr. Jackson had two jobs in 2005. The first job, in which he earned $74,007, was from January to August, and the second job, in which he earned $35,311, was from August to the end of the year. As a result, he paid too much Social Security tax. How much should he be refunded?

• $1,197.72

• $982.57

• $2,508.33

• $2,802.68