if a 6.2% social security tax is applied to a maximum wage of $106,800, the maximum amount of social…

if a 6.2% social security tax is applied to a maximum wage of $106,800, the maximum amount of social security tax that could ever be charged in a single year is:\na. $213.60\nb. $6,408.00\nc. $6,621.60\nd. $17,225.81\n\nplease select the best answer from the choices provided\n\n○ a\n○ b\n○ c\n○ d

if a 6.2% social security tax is applied to a maximum wage of $106,800, the maximum amount of social security tax that could ever be charged in a single year is:\na. $213.60\nb. $6,408.00\nc. $6,621.60\nd. $17,225.81\n\nplease select the best answer from the choices provided\n\n○ a\n○ b\n○ c\n○ d

Answer

Explanation:

Step1: Recall the tax calculation formula

To find the tax amount, we use the formula: (\text{Tax Amount} = \text{Wage} \times \text{Tax Rate}). Here, the wage is ($106,800) and the tax rate is (6.2% = 0.062) (in decimal form).

Step2: Calculate the tax amount

Substitute the values into the formula: (\text{Tax Amount} = 106800 \times 0.062). Calculating this: (106800 \times 0.062 = 6621.6)? Wait, no, wait. Wait, (106800\times0.062): Let's compute (106800\times0.06 = 6408) and (106800\times0.002 = 213.6), then add them: (6408 + 213.6 = 6621.6)? Wait, no, that's not right. Wait, no, the problem says "maximum wage of $106,800", so the tax is on that wage. Wait, but let's recalculate: (106800 \times 0.062). Let's do (106800 \times 62 / 1000) (since (0.062 = 62/1000)). (106800 \div 1000 = 106.8), then (106.8 \times 62 = 106.8\times60 + 106.8\times2 = 6408 + 213.6 = 6621.6)? Wait, but option b is $6,408.00, option c is $6,621.60. Wait, maybe I made a mistake. Wait, no, the Social Security tax is applied to the wage, so the tax is (106800 \times 0.062). Let's compute (106800 \times 0.062):

(106800 \times 0.062 = 106800 \times \frac{62}{1000} = \frac{106800 \times 62}{1000})

(106800 \times 62 = 106800 \times (60 + 2) = 106800\times60 + 106800\times2 = 6408000 + 213600 = 6621600)

Then divide by 1000: (6621600 \div 1000 = 6621.6). So the tax amount is $6,621.60? Wait, but that's option c. Wait, but maybe I misread the problem. Wait, the problem says "maximum wage of $106,800", so the tax is on that. Wait, but let's check the options again. Option b is $6,408.00, which is (106800 \times 0.06 = 6408), and option c is (106800 \times 0.062 = 6621.6). So the correct answer should be c? Wait, but maybe the question has a typo, or maybe I made a mistake. Wait, no, let's check the calculation again. (106800 \times 0.062):

(106800 \times 0.062 = 106800 \times 62 / 1000 = (106800 / 1000) \times 62 = 106.8 \times 62 = 6621.6). So the tax amount is $6,621.60, which is option c.

Answer:

C. $6,621.60