Chapter 13Marginal Tax Rate(581): percentage of an additional dollar of earnings that goes to taxes. Higher for higher-paid employeesSocial 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.
This is the end of the preview.
access the rest of the document.