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Chapter_13_Study_Guide - Chapter 13 Marginal Tax Rate(581...

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Chapter 13 Marginal Tax Rate (581): percentage of an additional dollar of earnings that goes to taxes. Higher for higher- paid employees Social Security (584): benefits begin at age 65 years and 6 months (full benefits) or at age 62 (at permanent reduction in benefits) initially, but now full benefits begin at 67 years for those born after 1960. In 2009, pay 7.65% tax on first 106,800 of earnings. Unemployment Insurance (585): Established in 1935- No state imposes same tax on every employer. Has 4 objectives: 1- offset lost income during involuntary unemployment, 2- to help unemployed workers find new jobs, 3- to provide incentive for employers to stabilize employment, and 4) to preserve investments in worker skills by providing income during short-term lay-offs (so they go back to them, not new ppl). Elgible for benefits if: 1. Prior attachment to workforce, 2)available for work, 3)actively seeking work, 4: not discharged for cause, didn’t quit, and aren’t out due to a labor dispute. Legally Required for a company to have it.
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