general Insurance

FIN 3610 Assignment 8 Name_______________________

Chapter 18

Please remember that you must do your own work. Any plagiarism will result in a grade of zero for all students involved. Please use your own words even if you are using the textbook for answers. Always provide a citation when a reference is used.

This assignment is different from the prior assignments as you will need to refer to the Social Security website for information needed to complete this assignment. Please refer to the SSA.gov website for tax rates and limits for 2016. Assume you earn $150,000 in 2016. Remember to provide all of your citations. Please answer the following questions:

1. How much will you pay in total into the OASDI system, including Medicare?

2. How much will you pay for Medicare only?

3. How much will your employer pay on your behalf for all Social Security and Medicare?

4. Is the Social Security tax progressive, regressive, or proportional? Please explain your reasoning.