Question

Which of the following payroll taxes would be most beneficial for workers (e.g., provide the highest after-tax wage)?A)5% on workers and 10% on employersB)9% on workers and 6% on employersC)12% on workers and 1% on employersD)2% on workers and 14% on employers

Answer 1

Answer: (C) 12% on workers and 1% on employers

Explanation:

Option C gives the best answer to thjs, i.e. 12 percent on workers and 1 percent on employer.

This will result to a burden on the employer and also bring a tax liability of 13 percent on the employee.

This rate will provide the highest after tax Income compared to other options given as the this gives a maximum wage after tax.

Option C is best for this.

I hope this helps, cheers