Social Security and Medicare Answers

Sam is thinking of retiring from his job after many years of faithful service. During the last 35 years at his job, his annual salary averages to $37,991. Every month, his bills total $1,755. How much money would Sam need each month to supplement his monthly Social Security benefit (assuming his annual benefit is 42% of his salary average) and still be able to pay his bills? a.At least $81.23b.At least $425.32c.At least $1,410.92d.At least $3,019.67

Determine the total annual FICA tax for an annual salary of $110,330. Use $106,800 for maximum taxable earnings. a. $822.14 b. $844.02 c. $8,221.39 d. $8,440.24 Please select the best answer from the choices provided

Determine the total annual FICA tax for an annual salary of $63,250.a.$4,838.63b.$7,538.73c.$48,386.30d.$75,387.30

Jennifer is excited to be retiring after 35 years of service as a high school English teacher. Over the past 35 years, Jennifer’s average annual salary was $26,443. How much can Jennifer expect to receive on a monthly basis from Social Security, assuming she will receive 42% of her average annually?a.$11,106.06b.$1,110.61c.$9,255.05d.$925.51

A major concern with Social Security is the possibility that funds will not be available when today’s tax-payers retire to become beneficiaries. According to the Social Security Trustee’s report, an increase of 1.89% in the Social Security payroll tax would keep the account full for the next 75 years. To achieve similar results, benefits would have to be decreased from the current 42% of the ending salary to 29% of the salary. Cindy is relatively new to the workforce. She has 32 years until she can retire. Her current annual salary is $45,000. 1a) Calculate how much Cindy will have to pay in Social Security tax (6.2%) based on this salary. 1b) Calculate how much Cindy will have to pay in Social Security tax if the tax was increased by 1.89%. 2a) Calculate Cindy’s annual Social Security benefit (about 42%) if her salary remains unchanged until she retires (annual average is $45,000). 2b) Calculate Cindy’s annual Social Security benefit if her salary remains unchanged but benefits (based on her annual salary of $45,000) were cut from 42% to 29%. 3) If Cindy were given a choice between the increase in Social Security tax now or the decrease in Social Security benefits when she retires, which would you recommend she choose? Explain your answer thoroughly.

Bob just turned 66 years old and is considering retirement. His average annual salary over the last 35 years is $50,760. Assuming that he will receive 42% of his average annual salary, what will be his annual Social Security benefit? a. $2,131.92 b. $21,319.20 c. $213,192.00 d. $2,131,920.00 Please select the best answer from the choices provided

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $35,400.a.Social Security tax: $2,194.80, Medicare tax: $513.30b.Social Security tax: $21,948.00, Medicare tax: $5,133.00c.Social Security tax: $6,621.60, Medicare tax: $513.30d.Social Security tax: $66,216.00, Medicare tax: $5,133.00

Calculate the Social Security and Medicare tax that would be applied to an annual salary of $125,000. Use $106,800 for maximum taxable earnings. (Soc Sec 6.2%, taxed up to $106,800 and Medicare 1.45%). a. Social Security tax: $77,500.00, Medicare tax: $18,125.00 b. Social Security tax: $7,750.00, Medicare tax: $1,812.50 c. Social Security tax: $66,216.00, Medicare tax: $18,125.00 d. Social Security tax: $6,621.60, Medicare tax: $1,812.50 Please select the best answer from the choices provided

One possible solution to a diminishing Social Security payroll is to increase the Social Security tax by 1.89%. How would such an increase effect the tax on an annual salary of $54,000? a.Annual tax would increase by $1,020.60.b.Annual tax would increase by $2,327.40.c.Annual tax would increase by $3,348.00.d.Annual tax would increase by $4,368.60.

Which of the following statements accurately describes the result of an increasing worker-per-beneficiary ratio in the Social Security system?a.More taxed workers than beneficiaries means that the system is collecting more money for the money being drawn out. This leaves money in the system and secures benefits for future beneficiaries.b.More taxed workers than beneficiaries means more money is being drawn from the system for the money put in. This leaves a shortage of money in the system making benefits for future beneficiaries insecure.c.More taxed workers than beneficiaries means that the system is collecting more money for the money being drawn out. This leaves a shortage of money in the system making benefits for future beneficiaries insecure.d.More taxed workers than beneficiaries means more money is being drawn from the system for the money put in.This leaves money in the system and secures benefits for future beneficiaries.