joseph worked 2 jobs last year. he earned $97,500 and one and $33,000 at the other. the maximum taxable…

joseph worked 2 jobs last year. he earned $97,500 and one and $33,000 at the other. the maximum taxable income last year was $118,500 and the social security tax rate was 6.2%. determine whether or not joseph paid too much social security tax. if he did pay too much, determine how much was overpaid

joseph worked 2 jobs last year. he earned $97,500 and one and $33,000 at the other. the maximum taxable income last year was $118,500 and the social security tax rate was 6.2%. determine whether or not joseph paid too much social security tax. if he did pay too much, determine how much was overpaid

Answer

Explanation:

Step1: Calculate total income

$97500 + 33000=130500$

Step2: Compare with maximum taxable income

Since $130500>118500$, Joseph paid too much.

Step3: Calculate over - paid amount

The amount over the limit is $130500 - 118500 = 12000$. The over - paid tax is $12000\times6.2%=12000\times0.062 = 744$

Answer:

Yes, Joseph paid too much social security tax. The overpaid amount is $744$.