Income levels and tax rates are very different today than those at the start of Social Security. Use the information below to calculate your weekly earnings and FICA/payroll taxes in 1937 and today. Click on the correct answer. To assess your answers, click the Check My Answers button at the bottom of the page.
1) It is 1937. You make $3,120 a year, and you get paid every week. How much do you make per week?
2) Suppose that the FICA tax rate is 2 percent. How much FICA tax is withheld from your paycheck each week?
3) How much FICA tax is withheld over a whole year?
4) It is 2007. You make $62,400 a year, and you get paid every week. How much do you make per week?
5) Suppose that the FICA rate is 6.2 percent. How much FICA tax is withheld from your paycheck each week?
6) How much FICA tax is withheld over a whole year?
