Question

Information given: In 2020, Social Security will replace : 90% of first $960 of AIME                             &

Information given: In 2020, Social Security will replace : 90% of first $960 of AIME

                                                                                                     32% between $960 and $5,785 of AIME

                                                                                                     15% between $5,785 and $11,475 of AIME

                                                                                                     0% over $11,475

What is the wage base for 2020? How can you tell from just using the information given above?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

Ans: AIME Stands for Average Indexed Monthly earnings

Given are the four slabs and these slabs are based on monthly limits

to calculate wage base for 2020 then we should multiplied it by 12 to get on Wage base limit for the year

and in above slabs there is 0% over 11,475

Wage base limit will be= $11,475*12

=> 137,700

For example if a person annual income is 150,000 then he will make it monthly AIME by dividing by 12

lets say =>12,500

therefore social Security will be zero as AIME over $11,475 will be 0%

answered by: anonymous
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The number of children (in thousands) receiving social security for each year from 1988-1955 can be...
The number of children (in thousands) receiving social security for each year from 1988-1955 can be modeled using the following polynomial: N(t)=-3.7478t3+50.9441t2-97.3441t+3216.7194 where t is time in years since 1988. Use your graphing calculator to graph the function and sketch the graph of the function below. Include the window that you used on your calculator. What is the y-intercept and what does this tell you in practical terms? How many children on social security does this model predict in the...
Many elderly people have Social Security payments as their sole source of income. Because of this,...
Many elderly people have Social Security payments as their sole source of income. Because of this, there have been attempts to adjust these payments so as to keep up with changing prices. This process is called ”indexing”; this question will lead you through the process. Suppose that in the year 2000, a typical Social Security recipient consumed only Food and Housing. The price of housing was $15/unit and the price of food was $5/unit. Denote the quantities of food and...
a. Assume that Social Security promises you $42,000 per year starting when you retire 45 years...
a. Assume that Social Security promises you $42,000 per year starting when you retire 45 years from today​ (the first $42,000 will get paid 45 years from​ now). If your discount rate is 4%​, compounded​ annually, and you plan to live for 15 years after retiring​ (so that you will receive a total of 16 payments including the first​ one), what is the value today of Social​ Security's promise? The value today of Social​ Security's promise is ​$____? b. Assume​...
Robin Dunbar, a leading anthropologist at Oxford University who studies social networks, has suggested that there...
Robin Dunbar, a leading anthropologist at Oxford University who studies social networks, has suggested that there is a magical number for social networks that humans can manage: any grouping larger than 150 people becomes overwhelming. With that in mind, a group of researchers at facebook wanted to study more about how their average user manages their social networks. In particular they wanted to study the users with the highest friend counts to see how they managed. They took a random...
Your class has just taken their first examination for this course. A sample of 11 scores...
Your class has just taken their first examination for this course. A sample of 11 scores out of the 15 students enrolled in this class shows the following in percentages: 80, 40, 90, 30, 50, 80, 60, 20, 45, 75, and 95? (a)Based on the information above, how well do you think your entire class performed in this examination? Justify your answer. (b)Can you also estimate a possible percentage range of your own exam scores if they were not among...
3) Now you will plan for your retirement. To do this we need to first determine...
3) Now you will plan for your retirement. To do this we need to first determine a couple of values. a. How much will you invest each year? $1,000 a year is what i will invest. State what you will use for P, r, and n to earn credit. ( The typical example of a retirement investment is an I.R.A., an Individual Retirement Account, although other options are available. However, for this example, we will assume that you are investing...
Close Friends: The 2004 General Social Survey (GSS) interviewed a random sample of adult Americans. For...
Close Friends: The 2004 General Social Survey (GSS) interviewed a random sample of adult Americans. For one question the interviewer asked: “From time to time, most people discuss important matters with other people. Looking back over the last six months – who are the people with whom you discussed matters important to you? Just tell me their first names or initials.” The interviewer then recorded how many names or initials the respondent mentioned. Results are tallied in the following table:...
Question 1 – Using CPI Suppose you are given the following information about wages and CPI....
Question 1 – Using CPI Suppose you are given the following information about wages and CPI. In 1984 you were being paid $35,000 annually and then 30 years later in 2014 had a salary of $75,000. If you were told that the CPI in 1984 and 2014 were 103.9 and 236.7 respectively, which year were you being paid a greater salary? Explain. Question 2 – Growth rate of GDP In 1948 the US GDP was $275B. If the US had...
I quit social media for 1 month -- it was the best choice I ever made...
I quit social media for 1 month -- it was the best choice I ever made I quit social media for a month. So, I quit Facebook, Instagram, Snapchat, and Twitter. I just needed a break. It was time to cut myself off I stopped using social media this morning and my brain is going crazy. I just realised how often I glance down just to see if I have a notification. When I wake up in the morning, on...
Using information given in the table below and applying nearest neighbor algorithm, calculate the shortest path...
Using information given in the table below and applying nearest neighbor algorithm, calculate the shortest path that starts from Home, visiting all the locations - Post Office, Dry Cleaning, Bank and Grocery Store - in any order and goes back to Home. Distance between points Home Bank Post Office Dry Cleaning Grocery Store Home NA 8 18 32 24 Bank 8 NA 5 21 13 Post Office 18 5 NA 34 13 Dry Cleaning 32 21 34 NA 13 Grocery...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT