Answer:
$3066
Step-by-step explanation:
We have been given that employees in 2012 paid 4.2% of their gross wages toward social security (FICA tax), while employers paid another 6.2%. We are asked to find the amount paid by an employee earning $73,000 per year toward social security.
To find the amount paid by an employee with annual gross earnings of $73,000, we need to find 4.2% of $73,000.
[tex]\text{Amount paid by the employee}=\$73,000\times \frac{4.2}{100}[/tex]
[tex]\text{Amount paid by the employee}=\$730\times \frac{4.2}{1}[/tex]
[tex]\text{Amount paid by the employee}=\$3066[/tex]
Therefore, the employee will pay $3066 toward social security out of their gross wages.
