Social Security Tax Rates and Calculations

The video tutorial explains the Social Security tax rates for employees in 2012, which were 4.2% of gross wages up to $113,700. It demonstrates how to calculate the tax for someone earning $61,000 using a percent equation. The tutorial also discusses the return to a 6.2% tax rate in 2013 and the implications for employees earning above the wage base limit. Finally, it raises questions about the fairness of the tax system, particularly for high earners.

What was the Social Security tax rate for employees in 2012?

• 6.2%

• 7.2%

• 4.2%

• 5.2%

How much Social Security tax would someone earning $61,000 pay in 2012?

• $7,499

• $6,200

• $3,100

• $2,562

What is the first step in calculating a percentage of a number?

• Add the percentage to the number

• Convert the percentage to a decimal

• Multiply the number by 100

• Subtract the percentage from the number

What was the Social Security tax rate for employees in 2013?

• 4.2%

• 6.2%

• 7.2%

• 5.2%

What is the maximum Social Security tax an employee could pay in 2013?

• $6,200

• $7,499.40

• $3,100

• $2,562

If someone earns $50,000, how much Social Security tax would they pay at a 6.2% rate?

• $2,562

• $3,100

• $6,200

• $7,499

For an income of $100,000, what is the Social Security tax at a 6.2% rate?

• $3,100

• $6,200

• $2,562

• $7,499

What is the Social Security wage base limit in 2013?

• $113,700

• $100,000

• $50,000

• $200,000

Why might the Social Security tax system be considered unfair to high earners?

• They pay more than the wage base limit

• They pay no tax

• They pay the same amount as lower earners

• They pay a higher percentage

What could be a topic of discussion regarding Social Security tax laws?

• The fairness of tax rates for high earners

• The increase in tax rates

• The decrease in tax rates

• The elimination of tax rates