Good morning PLEASE HAVE YOUR MATH NOTEBOOK OUT

Good morning!!! PLEASE HAVE YOUR MATH NOTEBOOK OUT AND SOMETHING TO WRITE WITH.

Reminders 1. 1 Assignment was due Wednesday (8/19) 1. 2 Assignment was due Monday(8/24) 1. 3 Assignment is due Wednesday (8/26) Tutoring: log in with the same zoom link TUESDAY 7: 40 – 9: 15 Open WEDNESDAY 12: 29 – 1: 40 FRIDAY 7: 40 – 9: 15 House Th 8/27 via Zoom 5: 30 – 7: 00 Website: chollacruzmathfinance. weebly. com

Social Security 1. 4 and Medicare

Introduction In complete sentences, answer the following in your notebook: What Why do you know about Social Security and Medicare? does the United States have such programs?

Objectives: I will be able to… Compute paycheck deductions for Social Security and Medicare

VOCABULAR Y An insurance program is available jointly through your employer and the United States government. This insurance, Social Security, covers 90% of all American jobs. President Franklin D. Roosevelt started Social Security in 1935. It was established in the Federal Insurance Contributions Act (FICA). Social Security provides income for people after they retire. Social Security also pays benefits to disabled workers. If an eligible worker dies, benefits are paid to surviving family members.

VOCABULAR Y When you work at a job covered by Social Security, you must pay FICA taxes. Both Social Security tax and Medicare tax fall under this category. These taxes help cover the cost of these federal insurance programs. Medicare is the nation’s largest health insurance program for people 65 years of age and older and some disabled people under 65.

VOCABULAR Y The costs of Social Security and Medicare split evenly between you and your employer. The amount of Social Security tax you pay depends on the Social Security percentage and the maximum taxable income for that year. A percentage of each worker’s salary is taken out of each paycheck, up to a set maximum amount. Any annual income greater than that amount is not subject to Social Security tax. Medicare tax is paid on all of your income. The money that you and your employer contribute to Social Security and Medicare is used to pay the current benefits to someone else. When you become eligible for benefits, the people working at that time will be paying for your benefits.

VOCABULAR Y The government keeps records of the amounts that you have paid to Social Security and Medicare under your own personal Social Security number. Your Social Security number is a unique nine-digit number that belongs only to you. It will be on all of your paycheck stubs, so be sure to check that it is correct every time you get paid. You will have the same Social Security number for your entire life. It is important to keep your Social Security number private to prevent identity theft.

Example 1: FICA taxes Romeo got his first job in 2006. In that year, Social Security tax was 6. 2% of income up to $94, 200. Medicare tax was 1. 45%. Romeo earned $73, 210. What did he pay in Social Security that year? What did he pay in Medicare that year?

Example 1: SOLUTION Romeo got his first job in 2006. In that year, Social Security tax was 6. 2% of income up to $94, 200. Medicare tax was 1. 45%. Romeo earned $73, 210. What did he pay in Social Security and Medicare that year? What do you know? What percent is for Social Security? (write as decimal) 6. 2% = 0. 062 What percent is for Medicare? (write as decimal) 1. 45% = 0. 0145 How much did he earn? $73, 210 What is the maximum taxable income? (was he over or under) $94, 200 he was under

Example 1: SOLUTION Romeo got his first job in 2006. In that year, Social Security tax was 6. 2% of income up to $94, 200. Medicare tax was 1. 45%. Romeo earned $73, 210. What did he pay in Social Security tax? What do you know? What percent is for Social Security? (write as decimal) 6. 2% = 0. 062 How much did he earn? $73, 210 What is it asking for? WORK 73, 210 x 0. 062 = 4, 539. 02 ANSWER Romeo paid $4, 539. 02 in Social Security tax.

Example 1: SOLUTION Romeo got his first job in 2006. In that year, Social Security tax was 6. 2% of income up to $94, 200. Medicare tax was 1. 45%. Romeo earned $73, 210. What did he pay in Medicare tax? What do you know? What percent is for Medicare? (write as decimal) 1. 45% = 0. 0145 How much did he earn? $73, 210 What is it asking for? WORK 73, 210 x 0. 0145 = 1, 061. 545 ANSWER Romeo paid $1, 061. 55 in Medicare tax.

Example 2: FICA taxes In 1986, Social Security tax was 7. 15%, to the maximum income of $42, 000. Medicare tax was 1. 45%. Madison earned $51, 211. What did she pay in Social Security that year? What did she pay in Medicare that year?

Example 2: SOLUTION In 1986, Social Security tax was 7. 15%, to the maximum income of $42, 000. Medicare tax was 1. 45%. Madison earned $51, 211. What did she pay in Social Security and Medicare that year? What do you know? What percent is for Social Security? (write as decimal) 7. 15% = 0. 0715 What percent is for Medicare? (write as decimal) 1. 45% = 0. 0145 How much did she earn? $51, 211 What is the maximum taxable income? (was she over or under) $42, 000 she was over

Example 2: SOLUTION In 1986, Social Security tax was 7. 15%, to the maximum income of $42, 000. Medicare tax was 1. 45%. Madison earned $51, 211. What did she pay in Social Security tax? What do you know? What percent is for Social Security? (write as decimal) 7. 15% = 0. 0715 How much is the maximum taxable income? $42, 000 What is it asking for? WORK 42, 000 x 0. 0715 = 3, 003 ANSWER Madison paid $3, 003 in Social Security tax.

Example 2: SOLUTION In 1986, Social Security tax was 7. 15%, to the maximum income of $42, 000. Medicare tax was 1. 45%. Madison earned $51, 211. What did she pay in Medicare tax? What do you know? What percent is for Medicare? (write as decimal) 1. 45% = 0. 0145 How much did she earn? $51, 211 What is it asking for? WORK 51, 211 x 0. 0145 = 742. 5595 ANSWER Madison paid $742. 56 in Medicare tax.

1. 4 HW due Monday 8/31 Download the 1. 4 Assignment from any of the following: Download • Website – chollacruzmathfinance. weebly. com • Student. VUE – Gradebook, Math Finance, 1. 4 HW, Resources • Microsoft Teams – Files, Unit 1 – Employment Basics, Homework, 1. 4 HW Complete assignment by typing directly into the word document Complete • Show all work • Answer in sentence format • Save completed assignment Turn in assignment by uploading it into the Student. VUE Drop Box Turn in • Gradebook, Math Finance, 1. 4 HW, Upload File From…, Open wherever you saved it