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Skittles99
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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.

Verified Answer :

CalculusGuy

The answer would be A).
Multiply $54,000 by 0.0189 to find out how much the tax would be increased by.
You get 1020.60

Answer:  Option "A" is correct.

Step-by-step explanation:

Since we have given that

Annual salary = $54000

Tax of Social Security = 1.89%

Since there is only one possible solution to a diminishing Social Security payroll is to increase the Social Security tax by 1.89%.

Annual tax would increase by

\(\frac{1.89}{100}\times 54000\\\\=\frac{1.89\times 54000}{100}\\\\=\$1020.6\)

Hence, Option "A" is correct.

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