Every worker sees a Social Security (FICA) tax taken out of his or her paycheck. The nominal tax rate on workers is 7.65 percent. But there's a catch: only wages below a legislated ceiling are taxable. In 2014, the table wage ceiling was $117,000. What percentage of income is paid in Social Security taxes by a worker in 2014 earning:
Instructions: Enter your responses as a percent rounded to two decimal places.
(a) $40,000? _____%
(b) $80,000? _____%
(c) $200,000? _____%
Instructions: Enter your response as a percent rounded to one decimal place.