## 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.

1. foreverandalways13

hi!

2. GodBlessYou

Hi! :) How's it going?

What is the maximum taxed in 1935?

4. GodBlessYou

yes :) and 1995

What is the maximum amount that can be taxed in 1935? (according to the information provided by the problem.

7. GodBlessYou

I'm not sure.. I have the answers \$30 and \$4,681.80 but I'm not sure how they got that..

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

Ok so now they want on percen of that would i divide by 100?

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

ok

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13. GodBlessYou

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Do you understand the drawing? What is the maximum amount of EARNINGS taxed in 1995?

15. GodBlessYou

\$30.00

17. GodBlessYou

oh ok so lets see it would be..

And, yes, \$30.00 is the maximum amount of tax for 1935.

19. GodBlessYou

would you multiply by 7.65%?

|dw:1374683423547:dw| What would you multiply by 7.65%

You have never answered my question regarding what is the maximum FICA earnings that is taxed at the 7.65% rate.

22. GodBlessYou

Im not sure..

23. GodBlessYou

g2g for a minute will be back

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.

Do you understand the last sentence in the above post? What is the maximum FICA earnings that can be taxed in 1995?

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