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?

Find 1.89% of the $54,000 annual salary: 0.0189 × 54,000 = $1,020.60. So the annual tax would increase by $1,020.60, which is choice A.

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