Question

reading a w-2 form
5-0008
1 wages, tips, other compensation 43,660.50
2 federal income tax withheld 1,756.56
3 social security wages 44,567.34
4 social security tax withheld 2,567.45
5 medicare wages and tips 44,567.34
6 medicare tax withheld 612.65
7 was withheld specifically for the tax that is used to pay for a healthcare program.
8 allocated tips
social security tips
$612.65 was withheld specifically for the tax that is used to pay for a healthcare program.
$2,567.45 was withheld for the payroll tax that specifically supports retired and disabled citizens.
if this individual made more money, the amount withheld for social security would
increase
decrease
stay the same

Explanation:

Step1: Analyze Social Security Tax

Social Security tax is a payroll tax with a wage base limit (the maximum earnings subject to the tax). If earnings exceed this limit, no more Social Security tax is withheld. But if current earnings are below the limit, earning more increases the taxable wages for Social Security, so the withheld amount increases.

Step2: Evaluate the Situation

The Social Security wages (box 3) and the withheld Social Security tax (box 4) are related. If the individual made more money (and is still below the wage base limit), the taxable Social Security wages would increase, so the withheld amount for Social Security would increase.

Answer:

increase