Name _____________________________________________________________ Date ________________________
The following table gives a historical look at Social Security and Medicare taxes from 2000 –
2010. Use the table for Exercises 6 – 10.
Year Social Security
Percent
Social Security Maximum
Taxable Income
Medicare
Percent
Income Subject
to Medicare Tax
2000 6.2% 76,200 1.45% All income
2001 6.2% 80,400 1.45% All income
6. In 2010, for the rst time since 2004 the maximum taxable income was not raised. Find the
maximum a person could pay into Social Security for 2010.
7. Let t(x) represent the total combined Social Security and Medicare taxes for the year 2007.
If x represents the income, express this total as a piecewise function.
8. Mr. Jackson had two jobs in 2005. The rst job, in which he earned $74,007, was from January
to August, and the second job, in which he earned $35,311, was from August to the end of
the year. At the rst job, he earned $74,007. As a result, he paid too much Social Security
tax. How much should he be refunded?
9. In 2009, Dr. Kirmser’s gross pay was $381,318.60.
a. What was her monthly gross pay?
b. In what month did she hit the maximum taxable Social Security income?
c. How much Social Security tax did she pay in February? Round to the nearest cent.
d. How much Social Security tax did she pay in September? Round to the nearest cent.
e. How much Social Security tax did Dr. Kirmser pay in April? Round to the nearest dollar.
$0
$1,970.15
April
$31,776.55
$6,621.60
$1,197.72
$711
t(x) =
{
0.0765x
6,045 + 0.0145x
when x ≤ 97,500
when x > 97,500