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.

Question

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.

foreverandalways13 · Answer

hi!

anonymous · Answer

Hi! :) How's it going?

radar · Answer

What is the maximum taxed in 1935?

anonymous · Answer

yes :) and 1995

radar · Answer

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

radar · Answer

I read it as $3,000.  What do you read it as?

anonymous · Answer

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

radar · Answer

Now what is 1% of that, that will be the maximum tax for 1935, which is what the problem is wanting from you.

anonymous · Answer

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

radar · Answer

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).

anonymous · Answer

ok

radar · Answer

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