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GodBlessYou

  • 2 years ago

In 1935, the FICA tax rate was 1% on the first $3,000 annually. In 1995, the FICA tax rate was 7.65% on the first $61,200 annually. Find the maximum annual FICA tax for 1935 and 1995 respectively.

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  1. foreverandalways13
    • 2 years ago
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    hi!

  2. GodBlessYou
    • 2 years ago
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    Hi! :) How's it going?

  3. radar
    • 2 years ago
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    What is the maximum taxed in 1935?

  4. GodBlessYou
    • 2 years ago
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    yes :) and 1995

  5. radar
    • 2 years ago
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    What is the maximum amount that can be taxed in 1935? (according to the information provided by the problem.

  6. radar
    • 2 years ago
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    I read it as $3,000. What do you read it as?

  7. GodBlessYou
    • 2 years ago
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    I'm not sure.. I have the answers $30 and $4,681.80 but I'm not sure how they got that..

  8. radar
    • 2 years ago
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    Now what is 1% of that, that will be the maximum tax for 1935, which is what the problem is wanting from you.

  9. GodBlessYou
    • 2 years ago
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    Ok so now they want on percen of that would i divide by 100?

  10. radar
    • 2 years ago
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    Don't worry about the answers, focus on the problem, The maximum amount (earnings) that can be taxed in 1935 is as stated by the problem is $3,000.00. Yes, 1% converted to a decimal is .01 (1/100).

  11. GodBlessYou
    • 2 years ago
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    ok

  12. radar
    • 2 years ago
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    |dw:1374683072347:dw|

  13. GodBlessYou
    • 2 years ago
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    |dw:1374683161153:dw|

  14. radar
    • 2 years ago
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    Do you understand the drawing? What is the maximum amount of EARNINGS taxed in 1995?

  15. GodBlessYou
    • 2 years ago
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    $30.00

  16. radar
    • 2 years ago
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    Please read again my last question and respond with a correct answer.

  17. GodBlessYou
    • 2 years ago
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    oh ok so lets see it would be..

  18. radar
    • 2 years ago
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    And, yes, $30.00 is the maximum amount of tax for 1935.

  19. GodBlessYou
    • 2 years ago
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    would you multiply by 7.65%?

  20. radar
    • 2 years ago
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    |dw:1374683423547:dw| What would you multiply by 7.65%

  21. radar
    • 2 years ago
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    You have never answered my question regarding what is the maximum FICA earnings that is taxed at the 7.65% rate.

  22. GodBlessYou
    • 2 years ago
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    Im not sure..

  23. GodBlessYou
    • 2 years ago
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    g2g for a minute will be back

  24. radar
    • 2 years ago
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    Again, it is information provided to you in the problem, it's there, see if you can find it. Please focus on information provided. I have copied it here for you top read again. In 1935, the FICA tax rate was 1% on the first $3,000 annually. In 1995, the FICA tax rate was 7.65% on the first "$61,200" annually.

  25. radar
    • 2 years ago
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    Do you understand the last sentence in the above post? What is the maximum FICA earnings that can be taxed in 1995?

  26. radar
    • 2 years ago
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    |dw:1374684268935:dw|

  27. radar
    • 2 years ago
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    |dw:1374684533266:dw| Solve this for the maximum FICA tax for the 1995 income. g2g, good luck with your studies.

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